CARES Act Update
CARES Act Update
Dear Treasurers, Finance Chairs and Pastors,
SBA PPP: On August 4th, 2020, the U.S. Treasury Department and Small Business Administration (SBA) published a set of FAQs about Paycheck Protection Program (PPP) Loan Forgiveness. While some of the FAQs repeat existing guidance in the SBA’s regulations and forms and instructions, the August 4th update provide some new information that may be helpful for PPP borrowers. Please click on the link above to view the latest document.
I've been getting questions about when the SBA PPP forgiveness application can be submitted and to whom it should be submitted. This application should be submitted directly to your bank (not the SBA) but many banks are not yet set up to accept them. So please stay in touch with the bank that granted your SBA PPP loan and request that they let you know when applications will be accepted.
Tax Treatment of Charitable Donations: For the over 9 out of 10 people who no longer itemize their charitable giving, the CARES Act will allow these individual taxpayers to deduct donations to charity of up to $300 on their 2020 federal tax return, even though they take the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.
For those donors who are still able to itemize their deductions, and therefore directly write off gifts to charity, the prior deduction cap was 60% of adjusted gross income. The CARES Act lifted this cap to 100% for individuals and joint filers.
You should be aware of and may want to increase awareness of these changes to the tax treatment of donations.