PPP EXTENDED- ACT FAST OR MISS OUT

4/5/2021

This is likely it--your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies.

A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,” and be forewarned that this can happen within weeks. So don’t procrastinate--not even for one day.

If you qualify for the first-draw PPP money, complete your application now. The money is going to run out fast--and once it’s gone, so is the PPP. Legislatively, the new round for the PPP ends on May 31. The clock ticks.

You qualify for the PPP if any of the following are true:

You file your taxes on Schedule C of your tax return. Businesses that file on Schedule C include independent contractors (often called “1099 folks”), single-member LLCs, proprietorships, and statutory employees, such as life insurance salespeople.
You file your taxes on Schedule F (ranchers and farmers).
You are a general partner in a partnership, but the partnership asks for and receives the money based on your and the other partners’ combined self-employment incomes, as adjusted.
You operate as an S corporation.
You operate as a C corporation.
You are the only worker in the business.
You have employees whom you pay on a W-2.

If you qualify, you want the PPP. It’s a much-needed, tax-free cash infusion. It’s called a loan, but it’s not. You have to repay loans. The PPP does not have to be repaid--it’s forgiven.

Plus, expenses paid with this forgiven PPP loan are tax-deductible.

If you need my help with either the first-draw or second-draw PPP, please contact us.

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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

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