Ephesians3-14
Level 8
01-04-2021
01:08 PM
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My client received $1,000 as an EIDL grant in April and then received $20,000 as a PPP loan. I know that the PPP loan proceeds are tax-free and that the proceeds can be used to pay for deductible expenses.
Regarding the $1,000...is that also tax-free under the recently passed legislation?
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TaxGuyBill
Level 15
01-04-2021
02:54 PM
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Yes, it is treated the same way as PPP. It is not taxable and the expenses are deductible.
Dependable
Level 4
01-05-2021
01:31 PM
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If a client only received a EIDL loan for $20K is it taxable?
sjrcpa
Level 15
01-05-2021
01:31 PM
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Not taxable but it is a loan and needs to be repaid.
The more I know the more I don’t know.
Dependable
Level 4
01-05-2021
01:32 PM
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Thank you much
