Paycheck Protection Program (PPP) Loans: A Game Plan Under Cares 2 (Currently Unavailable)

Author: Greg White

CARES 2 was signed into law on April 24. It authorizes an additional $310 billion of PPP loans. We’ll cover issues including:
• How does a partnership compute the loan amount?
• How does an individual compute the PPP loan amount?
• Should clients use a separate bank account for the funds?
• Under what circumstances could clients become personally liable for repayment of the loans?

Publication Date: May 2020

Designed For
Any tax practitioner advising individual and business clients.

Topics Covered

• Computing the maximum loan amount for partnerships and sole proprietors
• Keeping your clients out of trouble: How to avoid personal liability for PPP loan repayments
• Getting a game plan in place for the use of the funds once received.

Learning Objectives

• Recognize how to compute the maximum loan amount for partnerships and sole proprietors
• Identify a game plan for clients once the funds are received
• Describe what what percent of the PPP loan proceeds are required to be used for payroll
• Identify what is not a component of covered overhead
• identifies the loan forgiveness percent for nonpayroll costs

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of tax preparations for individual and business clients.

Advance Preparation
None