topic Is proprietors draw paid from PPP loan deductible in Get your taxes done using TurboTax

Is proprietors draw paid from PPP loan deductible

Josie6 — Fri, 12 Mar 2021 04:15:14 GMT

Re: Is proprietors draw paid from PPP loan deductible

HelenC12 — Fri, 12 Mar 2021 15:46:16 GMT

If the draw is your salary or wages, yes, it's deductible if you paid it with a PPP loan.

Any money you receive from the loan forgiveness is not part of your gross income and therefore isn’t taxable. Additionally, the payroll and other expenses that PPP loan forgiveness covers are deductible.

See How does a PPP loan affect my taxes? for additional information.

Re: Is proprietors draw paid from PPP loan deductible

Josie6 — Mon, 15 Mar 2021 11:23:15 GMT

After doing further research, I have found that money paid from a PPP loan to the self-employed that does not go through payroll is not a deductible expense.