The Small Business Administration announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences. The CARES Act, which passed in March of 2020, didn’t address whether expenses paid with the proceeds of PPP loans could be deducted on tax returns. The IRS took the position that these expenses weren’t deductible. However, the new Consolidated Appropriations Act allows expenses paid from the proceeds of PPP loans to be deducted. Contact us with questions or if you need help with the PPP loan application or forgiveness process.