JotikaT2,
OK, for us totally tax challenged, old, fat, one eyed and retired Senior Citizens, what are you telling me in plain English? Is it that, since there is no recourse and under the terms of the Covid-19 EIDL since default is not allowed, it cannot be forgiven or "charged off debt" and therefore is not taxable as income, gift or other taxable money coming into the LLC? Or, since this money is loaned to the LLC and then goes to the employees (even if as dividends it is still given for performance of services if the person is an employee of the LLC engaged in efforts to generate (or involved in) revenue generating efforts, directly benefiting the LLC) it is not taxable as it stands as a debt until discharged in bankruptcy, insolvency or other?
Just trying to get this straight in my head it will stand as a debt until resolved or the statute of limitations is satisfied? Thanks.
Mudtech61
