Is owner compensation replacement tax deductible?

cmorristax · ‎February 19, 2021

I know that expenses paid with a PPP loan are tax deductible on 2020 returns. Is owner compensation replacement received through PPP loan forgiveness considered an expense?

ThomasM125 · ‎February 19, 2021

If you used the proceeds for wages that are reported on a W-2 form, then you can deduct the wages from company income. Otherwise, the transfer of the funds to an owner is not deductible.

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ThomasM125 · ‎February 19, 2021

If you used the proceeds for wages that are reported on a W-2 form, then you can deduct the wages from company income. Otherwise, the transfer of the funds to an owner is not deductible.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Is owner compensation replacement tax deductible?