AB 80, the bill that would allow up to $150,000 of expenses to be deducted if paid with PPP forgiven loan amounts, has not yet passed. There has been no activity, and we can't get good information on when it will pass or what will actually be included in the final bill. Here are a few important things to know:
If and when the bill passes, we will send a Flash E-mail providing complete information on the details of the final bill;
Because there is speculation that the $150,000 amount could change, until we know the final details we suggest you extend any returns where the taxpayer received a PPP loan or had EIDL or other federal grant payments; and
Consider filing extensions for all returns that have been filed, and if there is a change you can file a superseded return rather than an amended return.