SBA PPP and EIDL Small Business Loans (some money is forgivable)

[Hjay]

W4 is a form that tells your employer how much dependents you have for withholding taxes. I can only assume you mean a W2, and that you have a second source of 1099 income.

Regarding the reduction calculation: look at line F- if it says cash just tally up related income by quarter, as they're deposited into your bank account- no need to worry about when the work was done.
If it says accrual you'll need to sit down and actually figure out each payment when it was for...

Shows how much I know. Thanks I’ll look into it.

[Hjay]

W4 is a form that tells your employer how much dependents you have for withholding taxes. I can only assume you mean a W2, and that you have a second source of 1099 income.

Regarding the reduction calculation: look at line F- if it says cash just tally up related income by quarter, as they're deposited into your bank account- no need to worry about when the work was done.
If it says accrual you'll need to sit down and actually figure out each payment when it was for...

I just took a look & cash is marked off. Would I now go by deposit date or date on check?

[cgr]

I just took a look & cash is marked off. Would I now go by deposit date or date on check?

According to the IRS, the date of the check.
If that's overly complicated, I doubt the SBA would penalize you for going by deposit date. Like accountants say... if you don't get audited, it's legal...

[gozalim]

I understand ddf is a business but it is a shame
I personally know of people that received thousands and thousands of dollars from the government directly based on what cgr said
the banks were overwhelmed and it was difficult to talk to people to get guidance and she was there and answered and guided many many people in helping them apply to a loan
although we can give back to dd by clicking on links when we buy things and apply for credit cards  this would seem to be the only opportunity to show our appreciation to cgr by clicking on her link and it is unfortunate that we will not have the opportunity to do so

anyone here who has benefited from her help is welcome to visit her site and find her link and show their appreciation, without DDF being required to host the actual link. I think it is gracious of him to not have shut down this conversation completely.

[AsherO]

anyone here who has benefited from her help is welcome to visit her site and find her link and show their appreciation, without DDF being required to host the actual link. I think it is gracious of him to not have shut down this conversation completely.

#spoonfeeding

[123-Rosh]

How does a partnership spend PPP proceeds on partner's salary?
Does the partnership need to actually write a check to the partner?
Does the partner then need to spend it or can the partner leave it in his personal account?

[cgr]

How does a partnership spend PPP proceeds on partner's salary?
Does the partnership need to actually write a check to the partner?
Does the partner then need to spend it or can the partner leave it in his personal account?

Partners must cut themselves a check from the business' bank account for the business to qualify for forgiveness.
What they do with that once they deposit it into their personal account is up to them (the SBA doesn't check what employees paid with PPP funds do with it- the point is to boost the economy to make sure people get paid and aren't laid off).

[123-Rosh]

Partners must cut themselves a check from the business' bank account for the business to qualify for forgiveness.
What they do with that once they deposit it into their personal account is up to them (the SBA doesn't check what employees paid with PPP funds do with it- the point is to boost the economy to make sure people get paid and aren't laid off).

A check to partners is considered payroll? Can 60% of the PPP proceeds be spent on checks to partners?

[cgr]

A check to partners is considered payroll? Can 60% of the PPP proceeds be spent on checks to partners?

Yes- how do the partners usually pay themselves?
60% must be spent on payroll or owner compensation, but owner-employees (partners) cannot get more than their 2019 K-1 1065 line 14, divided by 12, times 2.5.

[ual902]

"If you borrow under $150,000, your loan can be forgiven using a simple 1 page form."

Where can I get this form?

[cgr]

"If you borrow under $150,000, your loan can be forgiven using a simple 1 page form."

Where can I get this form?

You can get it once the SBA releases it...

[AsherO]

"If you borrow under $150,000, your loan can be forgiven using a simple 1 page form."

Where can I get this form?

Your lender, once they’ve set themselves up to process it. I don’t think any have, they’re probably prioritizing 2nd draw at this point. Lenders processing forgiveness are using the old formula/process that’s still in effect for PPP >$150k.

Edited to correct a typo

[cgr]

You’re lender, once they’ve set themselves up to process it. I don’t think any have, they’re probably prioritizing 2nd draw at this point. Lenders processing forgiveness are using the old formula/process that’s still in effect for PPP >$150k.

The SBA hasn't released it yet. Once they do lenders can start implementing (when they actually will is a different question).

[Deal Guy]

PPP
EIDL
FFCRA

ERC is only for employees, and is not available to the self-employed individual.

Does ffcra apply to schedule c or partnership with zero employees?

[cgr]

Does ffcra apply to schedule c or partnership with zero employees?

Yep.
Against line 31/line 14.

[Deal Guy]

Yep.
Against line 31/line 14.

How does that work? For example, if someone's spouse had covid (no employees). How much ffcra do you get?  How do you apply for it.

Let's make a simple example. There are 12 months, and the business earns 1000 per month.
During one month you are eligible for 2 weeks of ffcra? How much is that? And how do you get it?

[AsherO]

How does that work? For example, if someone's spouse had covid (no employees). How much ffcra do you get?  How do you apply for it.

Let's make a simple example. There are 12 months, and the business earns 1000 per month.
During one month you are eligible for 2 weeks of ffcra? How much is that? And how do you get it?

There’s a formula, I believe it’s the annual net income divided by 260 = 1 day for FFCRA purposes.


Source: [size=78%]https://turbotax.intuit.com/tax-tips/self-employment-taxes/stimulus-self-employed-tax-credits-and-social-security-tax-deferrals-covid/L0TzKT8JT[/size]

[cgr]

How does that work? For example, if someone's spouse had covid (no employees). How much ffcra do you get?  How do you apply for it.

Let's make a simple example. There are 12 months, and the business earns 1000 per month.
During one month you are eligible for 2 weeks of ffcra? How much is that? And how do you get it?

Depending on the reason you could be eligible for a total of 12 weeks.

[Deal Guy]

Depending on the reason you could be eligible for a total of 12 weeks.

What's if someone had covid, plus you are home with the kids from school?
I think for covid it's 2 weeks at full pay,
And for the kids it's 2/3 for 12 weeks?

How would you calculate it?
Is there a form on the tax return?

[cgr]

What's if someone had covid, plus you are home with the kids from school?
I think for covid it's 2 weeks at full pay,
And for the kids it's 2/3 for 12 weeks?

How would you calculate it?
Is there a form on the tax return?

It's a maximum of 12 weeks, even if you have a combination of reasons.

Found the correct FAQ page for you: https://www.irs.gov/newsroom/special-issues-for-employees#specific-provisions-related-self-employed-individuals

Question 65

Based on the new bill Question 62 will be changed to allow SE's to use 2019 income for average daily income instead of 2020, so that they can up their credit.