A Thankful Lowry Letter®

Week of 11/25/2020

We hope that you and your loved ones have a safe and Happy Thanksgiving!

Our office will be closed on Thursday, November 26^th in observance of the holiday. We will be working remotely on Friday, November 27^th, checking phone messages and responding to time-sensitive requests.

Here are some things we are thankful for:

We are grateful for the trust and confidence that you continue to show in us. It has been harder to connect in many ways, especially during the in-person meetings we enjoy, but we are glad that we have been able to provide some enriching information.

For those that missed it, Mac Stone’s wonderful talk is available here. This link is exclusively for our clients: https://youtu.be/fmagEd22z0Y

We are in awe of the ability of scientists and researchers to confront major problems like Covid-19. The impact of the disease will continue to increase as infections rise, but new treatment methods (and continued vaccine development) will make it less dangerous for all of us. Of course, this will take time and continued caution is important.

We are impressed by the resilience of nature. Against expectations, there are signs of improvement in the population of blue whales. The largest animals on earth were severely depleted by whaling and seem to be returning to their old territories.

We’re thankful for creative thinkers. Did you know that Brussels Sprouts are better, not because preparation methods have improved, but because the type grown and consumed today is actually different than the one that used to be readily available? Science at its best!

We’re grateful for respectful conversations where people don’t agree. This EconTalk podcast between Russ Roberts (the libertarian-leaning host) and Fredrik DeBoer (a self-described Marxist) discusses some really interesting ideas about education and the U.S. economy. You can also watch the video of it here.

Q: I received a Paycheck Protection Program (PPP) loan for my business. Is there anything I need to know about it as I apply for loan forgiveness?

A: One item we are watching is the deductibility of expenses paid with PPP proceeds. Normally, a business could deduct from income expenses like salary, rent, and utilities. Recent guidance from the IRS says that any expenses paid for with PPP money are not deductible, even if they would normally have been.

Organizations like the American Institute of CPAs have asked Congress to provide clarification and correction on this matter. This is unlikely to happen without additional Covid legislation which has stalled in Congress. For now, it means that business owners should reserve additional money for taxes. This will be a challenge for the hardest-hit businesses and we hope Congress will address it soon.