ASHLAND (CBS) — At Julie’s Z Breads in Ashland, the small employees transforms zucchini into every kind of treats. “We do about 40 different varieties of Zucchini breads and muffins,” defined proprietor Julie Gross.
Gross has a small storefront within the brick constructing on Essential Street that homes her kitchen, however a big a part of her enterprise is baking for espresso outlets and cafes. When these companies had been hit by the pandemic, so was she.
“It was a very scary moment when all that started to happen,” she recalled of these darkish days in April when eating places had been closed.
However her mixers stored churning and breads had been nonetheless being shipped to supermarkets due to a Paycheck Safety loan from the Small Enterprise Administration.
“It was like our lifeline in terms of being able to continue on and not have to say to my employees that they couldn’t come to work,” she mentioned.
However as we method the top of the tax yr, Julie is anxious about a few unknowns surrounding the loan. “Is it an outstanding loan? It is a forgiven loan?”
The S(BA) mentioned that loans wouldn’t must be repaid so long as the cash was used to cowl accredited bills like payroll, however Julie has crammed out all the paperwork and remains to be ready for the S(BA) to log out.
“It’s very unsettling,” she mentioned.
Peabody small enterprise tax skilled Herb Harris mentioned he feels assured that Julie received’t must pay again the loan. “I would tell her not to worry too, too much,” he instructed WBZ-TV.
However there’s one other downside: she may owe extra in taxes.
The IRS issued steerage again in November saying if loans are forgiven, bills associated to the loan usually are not deductible. Which means Julie and hundreds of different small enterprise could possibly be hit with the next than anticipated tax invoice.
“Where are they going to come up with $20 – $30,000 come tax time because they cannot deduct expenses?” Harris mentioned.
Julie is anxious about what the brand new spike in circumstances will do to her enterprise and never realizing what her tax burden will likely be simply compounds that fear. “It makes us very anxious, not knowing,” she mentioned.
Harris instructed WBZ-TV he’s hoping Congress will tackle the problem and go a legislation that can make the bills deductible. Within the meantime, he’s advising his purchasers to place away cash to cowl the additional taxes, one thing that’s not straightforward throughout a pandemic.