Expenses paid with 2020 PPP loans can be deducted on 2021 tax returns

The IRS announced a safe harbor for certain businesses that received first-round Paycheck Protection Program (PPP) loans but did not deduct any of the original eligible expenses because they relied on guidance issued before the enactment of the Consolidated Appropriations Act, 2021 (CAA), P.L. 116-260, in December 2020.

In Notice 2020-32 and Rev. Rul. 2020-27 (which were obsoleted by Rev. Rul. 2021-2) the IRS provided that a taxpayer that received a loan through the PPP was not permitted to deduct expenses that are normally deductible under the Code to the extent the payment of those expenses resulted in PPP loan

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Wall Street Banks Say Time for Loan Market to Ditch the Fax

(Bloomberg) — A corner of the debt capital markets known for still sending official notifications via email and even the occasional fax is poised for a modern update.

Bank of America Corp., Citigroup Inc., and JPMorgan Chase & Co. are developing a new platform for the $4 trillion syndicated loan market that would let lenders access data across their portfolio all in one place. Currently, lenders receive a hodgepodge of updates on each individual loan — interest payment notices and requests for amendments, for example. It’s a headache for investors who often have to manually update that data into their

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IRS offers safe harbor for claiming PPP loan deductions

The IRS and the Treasury Department are giving small businesses that received Paycheck Protection Program loans in the first round a way to deduct expenses they couldn’t claim last year.

The Internal Revenue Service and the Treasury released Revenue Procedure 2021-20 on Thursday, which provides a safe harbor in accordance with a provision in last December’s COVID-19 relief package. Under the previous rules, businesses that received PPP loans in 2020 to cover their payroll costs, mortgage interest, rent and utility payments couldn’t deduct the corresponding expenses. But once the Consolidated Appropriations Act was enacted last December, businesses were allowed to

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Student loans should be paid off before credit cards

Americans are in debt.

The average person has more than $92,000 in debt, according to the Experian 2020 Consumer Credit Review.

The most important step to paying off your obligations will be deciding which loans you need to tackle first, according to financial expert and podcast host Suze Orman.

You should start by categorizing your loans as secured or unsecured, said Orman.

Check out this video to see how the bestselling author recommends you determine which type of debt you have and what you need to do after compiling your list.

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Bipartisan bill would fix decades-old student loan problem for divorced Americans

In 1992, Congress tried to address student loan default rates by creating a statute in the Higher Education Act that enabled married couples to consolidate their debt with their spouses.

Nearly 30 years later, lawmakers are trying to pass a new law to fix the unintended consequence of some of those borrowers being divorced and squabbling over the consolidated debt.

A bipartisan group of lawmakers — including Representatives David E. Price (D-NC), Greg Murphy (R-NC), and Haley Stevens (D-MI), in addition to Senators Mark Warner (D-VA), Marco Rubio (R-FL), and John Cornyn (R-TX) — have now reintroduced the Joint Consolidation

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NFL players’ investments funded controversial high-interest loans

INVESTMENTS FROM AT least 15 current and former NFL players, including Von Miller, Nick Foles and Mark Brunell, were used in a complex investment program designed to profit at the expense of low-income borrowers, according to civil and bankruptcy court documents obtained by ESPN.

The players invested in a now-defunct company that funded a separate business targeting Texans with troubled credit ratings who needed quick cash and would put up their cars as collateral on loans averaging $1,000. Because of fees and interest in excess of 300%, borrowers would agree to pay hundreds of additional dollars to repay the loans.

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Student Loan Debt Forgiveness: Where It Stands Now

The Biden administration hasn’t made a decision when it comes to forgiving student loan debt, despite pressure from progressive Democrats that have called on the president to issue an executive order that would wipe out millions of borrowers’ debt.

However, the administration’s latest moves toward student loan forgiveness suggest that widespread student loan cancellation could be possible in the future.

Here’s what to know about student loan debt forgiveness and how soon it could impact your student loan debt.

What’s happening right now with student loan forgiveness?

In his most recent and obvious step toward mass forgiveness, Biden in early

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Student loan forgiveness: What Joe Biden’s debt plan looks like today

The gift of student loan debt forgiveness may be on its way.

Sarah Tew/CNET

The total amount of student loan debt in the US is roughly $1.7 trillion and ranks just behind home mortgages in consumer debt. Will President Joe Biden cancel $10,000 of student loan debt? Several members of Congress are urging Biden to go even higher and forgive $50,000 per student. At a Senate hearing on April 13, Sen. Elizabeth Warren compared student loan debt to a time bomb poised to throw millions of families off a financial cliff. 

Provisions like a third stimulus check (and “

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