Ppp forgiveness is not taxable. What about the 1k eidl grant?
If eidl is taxable, is there a way to return an eidl grant received before ppp, since it affects ppp forgiveness on that 1k, and you would rather have that 1k come as ppp, so it isn't taxed.
I can't really think of a scenario where it matters since all expenses paid with PPP are not considered deductions.
So PPP would look something like this:Payroll Expenses:
50,000 (let's say this is 8 weeks payroll)
-50,000 (your PPP loan forgiveness)
Total Payroll Expenses: $0
EIDL would look something like this:Payroll Expenses:
1,000
Total Payroll Expenses: $1,000
Other Income:
+1,000 (EIDL grant)
Total Other Income: $1,000
Net Income: $0
A combination of the two would look something like this:
Payroll Expenses:
50,000 (let's say this is 8 weeks payroll)
-49,000 (your PPP loan forgiveness)
Total Payroll Expenses: $1,000
Other Income:
+1,000 (EIDL grant)
Total Other Income: $1,000
Net Income: $0
And on the balance sheet:
Cash:
+1,000 (EIDL grant)
-1,000 (PPP repayment)
Net Cash: $0
Loans:
+1,000 (PPP unforgivable portion)
-1,000 (cash [taken from EIDL grant])
Net loans: $0