I’m Donna Bordeaux with Sweet Tooth CPA. Many of you may have looked at the PPP loan program before and not been qualified to get any of the money. We’ve had some recent rule changes that may change that for you.
If you file a Schedule C as a sole proprietor on your personal tax return for your business interest, the rules have changed. At the beginning of March, they changed the rules to allow you to use gross income, rather than your net profit, to determine how much you may qualify for. Many sole proprietors, deduct a lot of expenses or depreciation that may disqualify them under the previous rules for the PPP because they didn’t have enough income.
Now you can use gross income to determine how much you qualify for. So looking at line seven on your Schedule C we’ll show you your gross income. The income amount will maximize at $100,000. So let’s give us a typical example. If you have no employees, first $100,000 divided by 12 times 3.5. We’ll give you the amount of the PPP loan for your dessert or sweet shop.
If you do have employees, you’ll take the gross income on line seven and you’ll subtract wages as well as any benefit costs or retirement contributions that you made for your employee’s behalf. That number then again divide by 12 times three and a half. Now you do still have to show that you had the decline in revenue based on those rules.
If you have questions about your qualification for the PPP program, I’d love to chat with you. Just click on the let’s chat icon in the upper right corner of our website at SweetToothCpa.com. Thank you again. I’m Donna Bordeaux. Have a great day.
Donna Bordeaux, CPA with Sweet Tooth CPA
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.