CERTS Grants are Taxable
The IRS released some FAQs on the CERTS grants yesterday. The IRS indicated that the CERTS grants are taxable to the recipient. They also indicated that the expenditures the grant money is spent on, such as payroll costs, are still deductible expenses to the extent they would normally be deductible expenses.
The IRS released similar guidance on PPP loan forgiveness in 2020 only to have Congress clarify their intent to have the PPP funds nontaxable. We’re not saying that will happen with the CERTS grant, but just pointing out that these COVID-19 relief programs have been fluid and constantly evolving since March 2020.
Keep in mind there are only 12 days left to submit your CERTS grant application. Applications are due July 19th at 11:59pm.
Andy is a CPA and trusted advisor with 15 years of experience providing tax, accounting, assurance, and consulting services to transportation industry owners and operators. He is a tax principal with CLA in the Minneapolis, MN office. He also consults with high net worth individuals and owners of closely-held transportation businesses on all aspects of tax planning, estate planning, and retirement planning. Andy is also the tax leader for transportation industry across CLA.
Comments are closed.