Paycheck Protection Program (PPP) Loans: A Game Plan Under Cares 2
Author: Greg White
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Law Updates for EAs and OTRPs
1 hour Federal Tax Updates for CTEC |
CARES 2 was signed into law on April 24. It authorizes an additional $310 billion of PPP loans. We’ll cover issues including:
• How does a partnership compute the loan amount?
• How does an individual compute the PPP loan amount?
• Should clients use a separate bank account for the funds?
• Under what circumstances could clients become personally liable for repayment of the loans?
Publication Date: May 2020
Designed For
Any tax practitioner advising individual and business clients.
Topics Covered
- Computing the maximum loan amount for partnerships and sole proprietors
- Keeping your clients out of trouble: How to avoid personal liability for PPP loan repayments
- Getting a game plan in place for the use of the funds once received.
Learning Objectives
- Recognize how to compute the maximum loan amount for partnerships and sole proprietors
- Identify a game plan for clients once the funds are received
- Describe what what percent of the PPP loan proceeds are required to be used for payroll
- Identify what is not a component of covered overhead
- identifies the loan forgiveness percent for nonpayroll costs
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Basic understanding of tax preparations for individual and business clients.
Advance Preparation
None
