Wage Expense paid for via the government via the CARES Act and the PPP loan program is deductible on the federal return.  

In 2020, an SBA borrower had 6 months of its SBA loan payments paid for by the government via the CARES Act. Included in the payment is components for principal, interest, CDC, SBA and CSA Fees. 

Is the borrower entitled to deduct the mortgage interest and / or the SBA Fees paid for by the government via the CARES Act? 

The Annual Statement from the SBA shows the break down of fees paid by the borrower versus the government and shows interest paid by the borrower and total interest paid. 

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