PPP and Farmers with a Schedule F
If you have a Schedule F (Farm) on your tax return, please review the important information below regarding updates to the Paycheck Protection Program.
If you would like BakerStarrett’s assistance applying for a PPP (this is a billable service), please fill out this questionnaire: https://airtable.com/shroFiuQybmD7Ooh6
The new COVID relief bill that passed Congress at the end of 2020 restarted the Paycheck Protection Program. It also modified the program for taxpayers that report income on a Schedule F (farm self-employment income).
The changes to the the PPP program will impact our clients and Schedule F taxpayers in a couple of ways:
- Taxpayers that did not previously apply for a PPPloan:
- If you did not apply for a PPP loan in 2020 because you had a Schedule F Net Income of $0 or a schedule F loss, you can now apply for the PPP program based on the updated calculation that uses GROSS receipts.
- Taxpayers that previously applied for a PPP loan:
- May be able to increase their existing PPP loan using the updated calculation that uses GROSS receipts.
- May be eligible to apply for a second draw of the PPP program if Gross receipts decreased by 25% (using a quarter by quarter comparison of a quarter in 2019 to the same quarter of 2020).
For more details or questions please contact BakerStarrett your Iowa and Midwest Farm CPA experts.
What can I do to start
Give our office a call at 641-236-8083 and we’ll be happy to help!