This is what 1040 page 23 instructions says "Rev. Proc. 2021-48, 2021-49 I.R.B. 835, permits taxpayers to treat tax-exempt income resulting from the forgiveness of a PPP Loan as received or accrued: (1) as, and to the extent that, eligible expenses are paid or incurred; (2) when you apply for forgiveness of the PPP Loan; or (3) when forgiveness of the PPP Loan is granted." What is it saying? Why doesn't it simply say you can take tax exempt income when you get forgivness simple? What I understand is 1. You can take tax exempt income from ppp when you paid the expenses 2020 or 2021 even is you did not get the forgiveness, 2. When you applied for forgviness or 3 when you got it. Is this giving you a way to use Rev proc 2021-48 in the year your covered period was?
