If your business took out a PPP loan from the first round last spring, please read on...
We all know by now that in last December's congressional stimulus deal, PPP loans (for IRS purposes) were considered fully non-taxable. That's the good news.
But each state needed to decide whether they would conform and play by the same rules.
California has just decided and it's a mixed bag, depending on who you are. Governor Newsom and Sacramento legislature have agreed to a wide-ranging package, which includes 2 main points:
1) payment of $600 to families below a certain income level
2) PPP loans will be fully non taxable, but only up to $150k. Any amounts over $150k will be taxable income on the state income tax return (not IRS).
If you have any questions, please let us know.