Stack of 100 dollar billsForgivable loans, like those from the Paycheck Protection Program (PPP), generate expenses for farmers, and how to handle those expenses at tax-time is creating a lot of questions among farmers, one farm CPA said this week. Programs like PPP are forgivable on paper, but that “forgiveness” has yet to be granted for some. The recent HEROES Bill passed does provide the ability to deduct these expenses, but it’s not codified into law yet as many farmers begin the process of filing income tax returns. So, what to do? The best tactic now is to deduct expenses related to forgivable loans if forgiveness hasn’t been granted, since they are technically taxpayer debt. It’s akin to writing off bad debt. While there’s chatter that indicates the IRS may have guidance on this soon, if you’re banking on these expenses not being deducted, you may want to consider filing an extension. It’s a situation that could change a lot between now and year’s end. See more on the situation.