https://www.dailymail.co.uk/ne...-didnt-pay-back.html

America's wealthiest, including Tom Brady, Khloe Kardashian, Reese Witherspoon, Kanye and Nancy Pelosi's husband took millions in PPP loans – and nearly all have been forgiven

Paycheck Protection Plan was part of the DEMs 2021 American Rescue Plan

Kanye West's one-time sister-in-law Khloe Kardashian's denim brand Good American LLC had a loan of $1,245,405. The full amount was forgiven.

Jay-Z's Malibu Entertainment is linked to his streaming platform Tidal and took $2,106,398. The full amount was forgiven.

Sean Combs's cable network, Revolt Media and TV LLC, took $1,929,252 for 134 jobs, which was forgiven.

The two rappers are among the highest paid celebrities in the world, with Jay-Z worth $1.3billion, while Combs, aka Puff Daddy or Diddy, is just behind with a net worth of $900million.

NFL legend Tom Brady is set to become the game's first ever billionaire when he eventually retires with part of his income coming from the wellbeing site TB12, based on the Tom Brady diet, which he co-founded with body coach Alex Guerrero.

The company, TB12 Inc, was given $960,855 to help secure 80 jobs. The full amount, plus interest of nearly $12,000, is fully forgiven.

Jeff Koons is America's richest artist, but his firm Jeff Koons LLC still applied for $1,091,200 to keep 53 jobs, which was fully forgiven.

Reese Witherspoon's clothing company, Draper James LLC, was given $975,472 in the first PPP round for payroll and rent, and had the loan wiped out.

The movie industry was also badly hit by lockdowns. Legendary director's firm Francis Ford Coppola Presents LLC was approved for a loan of $7,147,038, which covered the wages of 469 workers and didn't have to be repaid.

Jared Kushner's family were granted three PPP loans for their various businesses.

The Kushner family's newspaper publisher Observer Holdings, LLC was approved in the first round of loans on April 27, 2020. The company got a $800,407 loan used toward payroll, utilities, rent and saved 41 jobs.

The loan, including interest, was forgiven in full.

The Kushner family hotel business Princeton Forrestal, LLC was approved for a $1,569,977 loan also in April 2020. The funds went to payroll, saving 196 jobs. The loan, including interest, was cleared.

Esplanade Livingston, LLC, which owns the land housing Kushner's family's Westminster Hotel in New Jersey, was granted a $630,735 loan, which went to paying 56 employees. The entire loan was forgiven.

House Speaker Nancy Pelosi's husband Paul Pelosi has a 8.1percent share in EDI Associates, a restaurant business which took out two PPP loans.

EDI Associates, based in San Rafael, was granted a $711,708 loan. The loan went to the salaries of 52 employees.

EDI Associates, this time based in Sonoma, California, applied for a loan in February 2021, and was granted $996,392.

In both cases, the loans, including interest, were forgiven.

OK tax experts. It is my understanding you must pay TAXES on the forgiven loan. If so, not quite a big of a deal. Bet most are Dimocrats.

As Paul Harvey would say "Here is the rest of the story":

If a creditor discharged a debt of $600 or more, you should receive a Form 1099-C from the IRS showing the amount of debt forgiven for that tax year. In most cases, this is the amount you'll need to include in your gross income – the sum of your earnings before taxes – when filing your tax return.

I’m not a tax expert, but I believe that PPP loan forgiveness is explicitly excluded from income by legislation. I believe you are correct that in general forgiven loans are treated as income. Just not the PPP loans.

https://taxcure.com/blog/forgiven-ppp-loan-taxable

Normally, the Internal Revenue Service (IRS) requires you to report forgiven loans as income, and this rule applies to both individuals and businesses. However, with the PPP loans, this standard does not apply. Even if the government forgives your PPP loan, the funds are still not classed as business income from a Federal perspective.

with PPP loans, you do not have to report the amount you received as income. Whether the SBA forgives the PPP loan or a part of it or not, it is currently not considered part of your taxable business income.

xxxxxxxxxxxxxxxxxxxxx

honestlou was honest

Thanks for the clarification. That is some real bullshit then. I am a small business owner and got by without any loans. Government for the entitled.

quote:

Originally posted by ZSMICHAEL:
OK tax experts. It is my understanding you must pay TAXES on the forgiven loan.

Say what??? I'll take $1 million loans every day and twice on Sunday that you'll forgive and will gladly pay taxes on them when I don't have to pay them back. Won't you?

quote:

Originally posted by ZSMICHAEL:
Thanks for the clarification. That is some real bullshit then. I am a small business owner and got by without any loans. Government for the entitled.

Lol I have yet to review anybody that hasn't received forgiveness yet. There are other programs outside of PPP/EIDL that I wasn't aware of until I ran into them (Eidl isn't forgiven but has exceptional kick the can down the road terms). Most embarrassing part is all the scratch that went out of country to the fraud under the stimulus plans. I'd guess 38% or so of the stimulus money that went out under Gov Stimulus et al was fraud.

The "Cares" act was a payoff to Corporations, Churches, Hospitals, etc. to go along with the Covid Scamdemic.
They were putting the pieces in place with the "Cares Act" in 2019.
https://www.congress.gov/bill/.../house-bill/748/text

Treasury Secretary Steven Mnuchin refused to disclose who got over $660 billion in taxpayer-backed small-business assistance.
https://www.usatoday.com/story...d-19-aid/3182772001/
We now know it was a who's who of the largest Corporations in the country.

The US Catholic church may be the largest recipient of federal coronavirus aid, with as much as $3.5 billion, AP analysis says
https://www.businessinsider.co...t-business-ap-2020-7

Ah, a sensationalized headline and story.

11.5 million of these loans; 968,532 for between $150,000 and $10,000,000; $742 billion of the $793 billion loaned forgiven, but let’s ignore all that and write a story just for clicks. Link for the numbers

It was a bullshit government program in response to a bullshit government manufactured crisis, but hey it gets votes. They government doesn’t even have to crank up the presses anymore. Instead, they just add zeros to everyone’s accounts electronically. Oh look, inflation is at it’s highest rate in 40 years. Imagine that.

I’ll preface this by agreeing that the whole Covid situation and the economical shutdown is total bullshit.

Those PPP loans weren’t all fraud, and weren’t all given to the wealthy. Some were used for their intended purpose. When you are a wholesale company that supplies goods to restaurants, and every restaurant in the US is effectively closed, you no longer have a business. You now have 32 employees with rent to pay, and mouths to feed, and zero work.

When the owners of the company are given a loan or a gift, (whichever way you wish to look at it) and that money is used to compensate employees, is that a bad thing? We kept coming to work, and I would find or create productive busy work. People would get their 40 hours and have a paycheck.

When your sales are 5% of what they normally are, and you can retain your entire staff, with no layoffs, and keep people paying their rent, and food on the table, isn’t that a good thing?

Yes, it would have been better had the fear, and shutdowns, manufactured crisis, had not happened. But it did happen and while I wish it didn’t, I know of 32 people who kept their jobs, and didn’t end “up shit creek without a paddle” because of these loans. I am one of those included in this.

The owners of our company did not take a penny of that money, nor did they pay themselves with that money. It was all dispersed to the employees. The owners of our company lost a lot of their personal money giving back to the employees and making sure we retained everyone. I do see the financials and I know this is a true statement.

I’m sure a lot of the money was used for and by people who didn’t really need it; however some of that money was used to keep people from being truly fucked.

Did it change the way I vote? Hell no. (No, I’m not some fucking liberal either)

You are right, Beancooker. I hold no ill will to the companies that took the money to keep their employees afloat during the scamdemic. The link I posted above let’s you search who took loans. For fun, I searched Apple and it brought up dozens of orchards. These people didn’t ask for this and they’re just trying to do right by their employees.

It should be no shock why inflation is crazy. Easy money does that. The housing bubble and a college education are two prime examples from the past.

Beancooker hit the nail on the head. The majority of these loans to grants saved a large portion of the small business's during the catastrophic bullshit shitshow that was the covid response. Every business owner I know that took one of these loans, lost their ass's personally, but was able to keep the doors open and their employees on their payroll. It was the best thing that could have happened, but was it put into practice the best way? A resounding Hell No! But there are a lot of people that did not have to go on unemployment, then have to find another job after the stupidity started to subside.

It's hard enough to find good loyal people now if you want to hire. Why not keep the ones that know your business the best, and do a great job for you. Without good outstanding employees your business would not be what it is.

quote:

Originally posted by Beancooker:
I’ll preface this by agreeing that the whole Covid situation and the economical shutdown is total bullshit.

Those PPP loans weren’t all fraud, and weren’t all given to the wealthy.

I'll agree with this.

They pretended these were 'loans' to get the legislation through, but it was pretty clear all along that the game was 100% about getting companies to meet the requirements to make them go away.

Business people follow incentives. They minimize costs, and maximize revenues. The USG created a situation to get done what they wanted (business continuing to serve customers and employ people) and, once the legislation was enacted then, excepting fraud, those who qualified (large and small) should get the treatment set up in the legislation.

The USG got what they wanted, and they should pay what they promised to whoever qualified and followed the rules.

Whether checks went to the mom-and-pop hardware store around the corner, or to Tom Brady, Exxon, or Trump Towers - doesn't matter.

quote:

Originally posted by honestlou:
I’m not a tax expert, but I believe that PPP loan forgiveness is explicitly excluded from income by legislation. I believe you are correct that in general forgiven loans are treated as income. Just not the PPP loans.

Correct. The forgiven PPP loans are not taxable.

Look, these people qualified for the loans. They complied with the law, borrowed the money, and received forgiveness as contemplated by the statute. They did nothing wrong, and don't let this rabble-rousing media make you think otherwise.

Direct your anger where it belongs - to the government which enacted this bad law.

The law may have been too broad, and didn't have stringent tests to determine who actually needed loans. That is on Congress and the administration that signed off on the legislation, not the borrowers.

Lots of the loans/grants went where they were needed. Some got unneeded windfalls.

quote:

Originally posted by jhe888:
Correct. The forgiven PPP loans are not taxable.

Yes, but...
Could be wrong, but I'm pretty sure the employer doesn't pay taxes on the PPP loan, BUT it counts as regular income for the employees for state and federal reporting purposes. The business doesn't pay taxes on it, but the portion used to pay salaries and wages is W2/3 taxable/subject to normal withholding, no?

Dot gov is in part paying itself with this "legislation".

"The Paycheck Protection Program (PPP) was created by the U.S. Small Business Association (SBA) during the COVID-19 pandemic to help small businesses and nonprofits in the U.S. via potentially forgivable, government-backed loans."

While some small businesses did get PPP money, it was peanuts compared to the money that went to large companies. If you read the Text of the H.R.748 - CARES Act, it's peppered with the words "Small Business".
I'm sure some out there truly believe the CARES Act was passed with the intentions of helping "Small Business".
There are a lot of former small business owners out there that will disagree.

The Paycheck Protection Program and "CARES Act" sounds almost as good to the American public as the recently passed "Inflation Reduction Act".

quote:

e

If the loan was used to pay wages, how can the business claim the wages as expense since they were reimbursed for that expense and, thus, had no cost the business?

A paid out wage is an expense, where the funds came from to pay that wage isn't the determining factor, be it from sales, PPP, cash infusion from investors, short term loan from a bank, money from pawning personal assets, you'd be amazed how some companies come up with the cash for payroll in short times.

quote:

Originally posted by stoic-one:

quote:

Originally posted by jhe888:
Correct. The forgiven PPP loans are not taxable.

Yes, but...
Could be wrong, but I'm pretty sure the employer doesn't pay taxes on the PPP loan, BUT it counts as regular income for the employees for state and federal reporting purposes. The business doesn't pay taxes on it, but the portion used to pay salaries and wages is W2/3 taxable/subject to normal withholding, no?

Dot gov is in part paying itself with this "legislation".

Yeah, but the employee was paid his regular wages for his regular work. That is normal income per the IRS code. That is totally logical.

quote:

Dot gov is in part paying itself with this "legislation".

That is correct, if the funds are used for payroll as designed the taxes for the federal portion would go back to the federal government but it's not dollar for dollar...