@AliciaP1
I got ppp first and second draw in 2021. I applied for and got them forgivness in 2022. Page 23 of 1040 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." Can I choose 1 my covered period year 2021 even though I did not apply and get forgiveness till 2022? If I can choose this for one of the draws I paid myself all instead of paying expenses. I am a sole prop no employees using sch c. Sba says paying yourself with ppp is payroll so is option one right for me?
