We’ve handled about thirty of these PPP Loan Forgiveness Forms successfully at this point. The process is certainly longer and more tedious than it needs to be, but we’re getting them done forgiven.
There’s an anomaly in the tax law that should be discussed which has to do with the interrelationship between the PPP Loan and the EIDL Grant. In order to explain this, let’s set up a scenario.
A client receives a $70,000 PPP Loan and a $10,000 EIDL Grant. When we put together the Form 3508 for forgiveness, the first $10,000 on the PPP cannot be forgiven because of the EIDL Grant. The anomaly comes on that $10,000.
Because it’s a grant, it’s income taxable. Also, because of the grant, $10,000 of the PPP Loan cannot be forgiven and must be repaid. Does that seem fair to you? It isn’t.
The proposed legislation stalled in Congress supposedly addresses this, but for the time being, there’s no solution. By definition the two should be separate. They should have nothing to do with each other. One is a loan. The other is a grant. Done. Period. End of story. There shouldn’t be a connection.
I have researched the issue, and there’s no way to do the returns where this phenomenon doesn’t occur. I feel like I’m in the scene from Goodfellas where they say, “And there’s nothing you can do about it.”
We’ll see if Congress addresses the issue.
Let me leave you with this.
We made our annual trek down to Fields to see the tree and the windows on Saturday afternoon. The store was almost completely empty. There were more people working the counters then customers in the store, but the scene we saw once we got off the elevator on the seventh floor was unimaginable.
The tree was there. There were a couple of people working, taking pictures, but that was it. No tables, no chairs. The room actually seems a lot smaller when there’s nothing in it. No lines of people waiting to get in. No place for the kids to take a picture with Santa.
A barren and surreal wasteland.
So we go back downstairs to see the windows, and what did they have? Basically nothing. No story. No theme. Nothing interconnecting the windows. No Uncle Mistletoe. No moving sleighs or elves packing presents. They decorated all of the windows the same with wrapped presents and balloons.
Do these people even begin to wonder why their store is empty?
Usually, I make it a point of buying something while I’m there. A scarf, some gloves, something for the girls, something. As soon as I saw the windows, I refused to buy anything based on the principal alone.
I felt sorry for the kids.
Some of my favorite childhood memories were in the Walnut room at Christmas with my now sainted Grandma. We would sit next to the tree, I’d order a hot dog, and they would bring it with two little silver dishes of ketchup and mustard.
When my daughter was little, we would go to the tree lighting ceremony. We’d enjoy the buffet, I’d smuggle in a bottle of homebrew, and she’d get her picture taken with Santa. We’d go downstairs to look at the windows, and my little girl’s eyes would light up in the wonderment of it all.
And now this. These people need to go back to their island.
On a happier note, the Pfizer vaccine is now being administered. With all of the people who say they’ll refuse being vaccinated, this pandemic may last a lot longer than it should.
I’m so tired of 2020, but we’re going to get through it. We’ll all get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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