So, the Treasury says expenses that can reasonably be expected to be used for PPP forgiveness are not deductible for 2020..
Whether things change by Congress or not, I wonder how that'd work for state income tax purposes..
I always thought PPP forgiveness would be taxable for states, but how it'd work if a client applies for forgiveness in 2021?
Assuming the current Treasury guidance stands, would a client not be able to deduct the expenses for state income tax purposes?
Any thoughts?