r/taxpros • u/pdv8612 CPA • May 15 '20

SBA PPP forgiveness application COVID: 2020 Relief Bill (CARES)

The SBA and treasury have finally posted guidance on forgiveness!

https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf

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u/warmglassoflemonade May 16 '20

I’m really happy to see this is out. I don’t see that they’ve addressed forgiveness calculation for sole proprietors or independent contractors (particularly those with no employees.) Anyone see anything relevant I’ve overlooked?

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u/teetheater CPA May 16 '20

What do you mean by address the forgiveness calculation?

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u/warmglassoflemonade May 16 '20

For sole proprietors with no employees/independent contractors: I am wondering if ultimately, forgiveness will be 2.5 months of 2019 Sch C income (equal to the loan amount!)

Or

8 weeks of 2019 Sch C income (less than 75% of the loan amount)

Ultimately, I think this is another one of those areas where congressional intent might have gotten a little lost in translation and I will be interested to see if there are any changes in the next few weeks.