Скачать или смотреть Don't get accidentally taxed on your PPP loan or EIDL Grant! How to avoid over-taxation

Borrowers have received PPP loans and EIDL advances (aka EIDL Grants) but there has been a lot of confusion around how to account for these items in accounting systems. With the unlikely nature of a forgivable loan, this has made proper accounting for these loans a bit confusing.

Today we cover how make to sure that you do not get accidentally taxed on the PPP forgiveness and EIDL advances. Your CPA or tax accountant may not know that you received a PPP loan or EIDL advance unless you specifically tell them or it shows on your P&L statement (profit and loss statement). We cover this and how to prevent improper treatment in this video. We also talk about how to avoid being taxed on unemployment (accidentally).

One of the key things we need to note about these transactions, is that the money will normally end up as “other income” on the Profit and Loss statement. However, we need to make sure we record these transactions on the proper dates in order to make sure your tax treatment is correct and falls in the right year.

Get your accounting for PPP and EIDL advance spreadsheet here: https://claracfo.podia.com/pppaccounting

Note: Journal entries are best done by someone who is familiar with double-entry bookkeeping.

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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/

Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.