For small businesses
Any money you receive from the loan forgiveness is not part of your gross income and therefore isn’t taxable. However, the payroll and other expenses that PPP loan forgiveness covers are also not deductible, even though they usually would be. The IRS says this is “to prevent a double tax benefit”.
Note: Employers that receive a PPP loan can’t also claim Employee Retention Credits.
Please see this LINK for more information.
