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Amazing work! This seems like a great way to clear up uncertainty around these loans. It's worth clarifying that (unless Congress changes something), loan forg
by henriquez 6y ago
Amazing work! This seems like a great way to clear up uncertainty around these loans.
It's worth clarifying that (unless Congress changes something), loan forgiveness counts as a taxable event. Meaning a business would have to pay income tax on the amount of the loan that was forgiven, typically at the time it's forgiven. This could be preferable to paying the loan, but might require taking on a new (smaller) loan to cover the tax liability.
- latortuga 6y agoThanks for the kind words! There certainly is uncertainty around these loans. We wanted to make it super simple to estimate how much you could get forgiven, given what we currently know from the law itself and the SBA guidance.
- dbjacobs 6y agoActually the CARES Act states loan forgiveness is not taxable (Act §1106(i)) [1], but also prevents businesses from then taking a deduction for expenses paid with the money (so no double benefit). [1] - https://www.congress.gov/116/bills/hr748/BILLS-116hr748eas.pdf https://www.congress.gov/116/bills/hr748/BILLS-116hr748eas.p...