From what I've seen, the EIDL -advance- is taxable income. Currently, anyways - see below about the CARES act.
My question is, currently, the IRS says that while the PPP Loan (assuming forgiven) is not taxable, the expenses you use the loan to pay for are NOT deductible. Assuming you got a loan for say $10K and used all of that to pay payroll, how do you remove that $10K from your deductible expenses in TT Business? (I'm an LLC filing as an S-corp) I know the current CARES act is trying to make those expenses deductible, but they aren't currently.
If it stand as is, I'd assume that you'd have to set aside the entire $10K from your deductible expenses. I mean, unless you're going to claim it's still sitting in your account and you didn't use -that- money to pay payroll? Which wouldn't work because part of forgiveness is saying you did use it.
