(1) the sum of (i) one of the following two options, up to a maximum of $100,000; If this amount is less than zero, set this amount to zero (if you are using 2020 and have not yet submitted a return for 2020, fill it out and calculate the value): I apologize if this question has been asked before, but you have several hundred comments and I did not find anything similar in the comment thread. I am the owner of a business, an online platform; Etsy. My wife and I file a return as a joint venture for tax purposes only (we are not a legally registered joint venture) because I use my name as a corporation. We both participate in the business, so with a 50% stake in our individual schedules c, we divide our gross revenues and business expenses. For 2019, I received 1099k from Etsy, which equates to a gross income of $105,000, just by name. So on each of our Schedules C (line 7), there is $52,000. The sba`s PPP application is addressed to self-employed persons with a single C using their crude, and not to “independent joint ventures”, where the gross is divided between the spouses. I`ve found several articles over the past few days regarding this issue, a bulletin specifically issued by the SBA on March 15 that updated this issue, but the direction of what to do with an actual request from a lender is vague. I have no idea how to display gross income in a PPP app where it displays the total of $105,000 compared to what`s on line 7 of each of our C schs.
I was really hoping you would get an overview of how to deal with this issue. Thank you in advance for your time! *Note: Deadlines for the January 2021 funding application process have not yet been determined. The most common question about independent PPP applications is the calculation of payroll. Many self-employed individuals, sole proprietorships, and independent contractors report different profits or seasonal fluctuations in the business each month, making it difficult to determine a fixed monthly payroll. More and more lenders are accepting PPP applications from freelancers, but the deadline is currently June 30, 2020 to obtain an approval number from the SBA. As a result, some applications stop to ensure that they meet this deadline. I am not aware of any requirement that the company must have a business license. In addition, you must prove that you were in business by February 15, 2020 to be eligible.
The pay before and after that date seems reasonable to me. I am somewhat astounded that your application was rejected for these reasons. You can definitely try contacting your lender to see if they will work with you. Another option is to apply via Nav, and we`ll put you in touch with lenders who will hopefully be more flexible in their approach. I can`t promise approval, of course, but our lending partners have helped borrowers who have struggled to get approval from a major bank. If you`ve already filed your tax returns, it should be simple: just submit a copy of your completed Schedule C to your lender. If you have not yet filed your tax returns, you will need to do retroactive accounting so that you can calculate your gross income and correctly complete your Schedule C. As an entrepreneur, I am (the person/professional with the title) who is in charge of the work. In this regard, I am a sole proprietor – I have never legally established myself “as an entrepreneur” as a separate company.
When the contracting company pays me, it pays me directly to the person/professional and my payments are deposited into a completely separate bank account from my LLC company. I started my cleaning business in 2019, but my net profit was a loss for that year. I read somewhere that if I were to go through 2020, they would calculate the net profit for January and February – if so, I would show a profit for those months that will bring a sole proprietor without employees. One puzzling part is that in May I switched to an LLC and hired staff in June, so I got a paycheck from June to December. When I complete the application, do I have to complete it without an employee or with me? Gil – The lenders Nav works with accept these requests. You can apply here to get a PPP lender. Hi Doug, we are applying and we also had questions about 1099-MISC vs 1099-NEC. Has the problem been resolved? This link also mentions forgiveness based on 1099-MISC and no mention of NEC. www.sba.com/funding-a-business/government-small-business-loans/ppp/1099-independent-contractors/ any contribution or guidance you can give if you have processed it is highly appreciated as the bank has already withheld its pardon application for more than 90 days due to its net loss and states that it is not eligible on this basis. Here you can access the information you need to fill out the form. 1) I am a subcontractor 1099, I received my first print. My question, which no one seems to answer, is: What can I spend the money on? I have read that you can pay for yourself, but I have not been able to get any details on what that means.
Do I have to keep records of what I spend it on? PPP loan for first draw/second draw: Check if this rebate request applies to your first or second PPP loan. If you apply for a rebate for a PPP loan from 2020, it is a PPP loan. I work as an independent contractor in the real estate services sector. When the PPP application process was opened to independent contractors on April 10, the documents required at the time only included Form MISC 2019 1099 to display the total salaries/commissions earned. It wasn`t until the following week, April 14, that Form 1040 Schedule C became a requirement. I submitted my application on the 10th. and was approved the following day, on the 11th, before the provisional final rule of the SBA. My loan was closed and financed without the need for additional documents. Although the total amount of the loan I am or was eligible for would not have changed due to the difference between my 1099 amounts and those in Schedule C, I wanted to ask if my loan is still “good” and “acceptable” without ever having to file Schedule C, or do I have to file it when it`s time to apply for a rebate? Question about the meaning “affected”. I am an independent contractor (LLC), applied, has been approved and has recvd the loan. Was in a contract, which of course ended on 31.03.20.
I had another contract (4/1), but a short-term contract (6mo). With the slowdown, I was very concerned about what might happen to the contract and/or that I might not get another one in the foreseeable future – basically very uncertain as things were changing almost every day. Fortunately still in the contract, but I wonder if it would cause a problem or if I didn`t need credit? The total amount is a few thousand more than 2 months of my pay (which is just myself), so it meets the 75% pay requirement. I just wanted to know if there is an audit for a contract (which can be terminated at any time even under normal circumstances). An idea? For independent contractors, what do you put for the company name My Father has an LLC for two commercial restaurant properties. It has not received rent from tenants since February due to the pandemic, although tenants have received their PpP and other benefits. He is retired and his income has been put on the net profit of monthly rents. As he does not pay me via pyroll, he was refused the first request for PPP-Rouns. Is he eligible for the PPP this time? However, it seems that it depends on the status of your loan if you can get a higher loan amount. The information that the SBA provides to lenders indicates that a lender may cancel a PPP loan application and submit a new application on behalf of the borrower to the point where the loan funds were paid to the borrower, but a Form 1502 (Loan Report) was not submitted by the lender to the SBA.
(The borrower should first repay the loan.) One of the most attractive features of PPP loan is its generous loan. .