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

[cgr]

If the owner received W-2 Income he should be eligible even if the Schedule C showed a loss.


Line 9: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). This
amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week
equivalent of their applicable compensation in 2019, whichever is lower.

Applicable compensation is 8/52 of Schedule C. If you have a look at the application instructions it points you to the April interim rules.

[TBD]

Applicable compensation is 8/52 of Schedule C. If you have a look at the application instructions it points you to the April interim rules.

Only for those who are ONLY SELF EMPLOYED.

Forgiveness amount on the PPP loan.
The Administrator, in consultation
with the Secretary, determined that it is
appropriate to limit self-employed
individuals’ (who file a Form 1040
Schedule C) use of loan proceeds to
those types of allowable uses for which
the borrower made expenditures in
2019. The Administrator has
determined that this limitation on selfemployed individuals who file a Form
1040 Schedule C is consistent with the
borrower certification required by the
Act;

[TBD]

Applicable compensation is 8/52 of Schedule C. If you have a look at the application instructions it points you to the April interim rules.

If so, a C-corp owner who only took w-2 wages of 100K, filed schedule C with a loss because of different business he had in beginning of 2019 and closed already, will receive $0 because he is 1, Self-employed 2, Has schedule C.
?

[cgr]

If so, a C-corp owner who only took w-2 wages of 100K, filed schedule C with a loss because of different business he had in beginning of 2019 and closed already, will receive $0 because he is 1, Self-employed 2, Has schedule C.
?

You file a separate schedule C for each business.

[LAX_Esq]

Instructions seem clear enough... Employee’s Name: Separately list each employee. Do not include any independent contractors, owner-employees, self-employed individuals, or partners.

It matters to them because of the 8/52 limit, and the limitation that owner's not include SALT, health benefits, and retirement in forgiveness...

But The 8/52 limit also applies to employees who go on line 1. See page 7, under "Cash Compensation" (do not enter more than $15,385 in Table 1 or Table 2 for any individual employee).

I guess it matters for the benefits though.

[TBD]

You file a separate schedule C for each business.

But C- corp dont show up on your personal return

[cgr]

But The 8/52 limit also applies to employees who go on line 1. See page 7, under "Cash Compensation" (do not enter more than $15,385 in Table 1 or Table 2 for any individual employee).

I guess it matters for the benefits though.

That's not 8/52- that's the 100k limit.
You can include benefits above the 100k limit.

[cgr]

But C- corp dont show up on your personal return

Why would his forgiveness for this company be based on a different Companies Schedule C? For a C Corp this is no "self-employment".

[TBD]

Why would his forgiveness for this company be based on a different Companies Schedule C? For a C Corp this is no "self-employment".

a C-corp owners w-2 wages goes on Line 1 or Line 9?

[YSP]

Are these loans based on credit? I got declined with the first bank I applied with and I'm not sure if its because they don't process PPP loans for 1099 employees or because my credit is not good. Anybody know?

[cgr]

a C-corp owners w-2 wages goes on Line 1 or Line 9?

Not 100% sure but I'd think line 1.
The term used on the application is owner-employees, self-employed, individuals, or partners.
A C Corp has shareholders and officers.

[zh cohen]

Either way, why cant I pay my wife the rest of the amount to make up the difference? Seems like I can.

Is she actually an employee? Or are you giving her a "no-show" job for the express purpose of scamming the SBA out of a few dollars?

[shapsam]

Is she actually an employee? Or are you giving her a "no-show" job for the express purpose of scamming the SBA out of a few dollars?

Where is the line between an "actual employee" and one that you're just using to scam the SBA?

[LAX_Esq]

Where is the line between an "actual employee" and one that you're just using to scam the SBA?

Right. Anyone's spouse could do administrative/clerical stuff for them; they're not required to participate in the core business.

[zh cohen]

Right. Anyone's spouse could do administrative/clerical stuff for them

But will she? And will the amount you are paying be the same you would pay someone else for the same work?

[shapsam]

But will she? And will the amount you are paying be the same you would pay someone else for the same work?

It's only about $700 a week.

[LAX_Esq]

It's only about $700 a week.

Right. And why can't we pay our wives more to do admin work than what we'd pay some random we found off Craigslist? Wife is smarter and more efficient and more trustworthy than some random.

She/we will have to pay income taxes on the salary, and my corp has to pay payroll taxes to give her the salary. 

[zh cohen]

It's only about $700 a week.

So? What is she doing to earn that money?

[zh cohen]

Right. And why can't we pay our wives more to do admin work than what we'd pay some random we found off Craigslist? Wife is smarter and more efficient and more trustworthy than some random.

Is she actually going to do the work? Who was doing it until now? Will she continue after the 8 weeks are over?

[LAX_Esq]

Is she actually going to do the work? Who was doing it until now? Will she continue after the 8 weeks are over?

Sure, she'll do the work. It's work I was doing myself and will do myself after the 8 weeks. She does some of it anyway, for no salary.