As the COVID-19 pandemic continues to have drastic effects on our economy, many roofing contractors are looking to take advantage of newly enacted government initiatives such as the Paycheck Protection Program, the Economic Injury Disaster Loan Emergency Advance, and the expansion of other Small Business Administration lending programs just to stay afloat. However, companies must be aware of the tax implications of applying and accepting benefits of many of these government programs.
This article will focus on the important issue of debt cancellation, and how debts canceled during the pandemic could affect your company’s tax exposure.