PPP Loan Forgiveness- Careful How You Execute How you execute the PPP Loan forgiveness program can have a dramatic impact on your 2020 income taxes. For those who are registered as LLC companies, the pass-through structure of expensing/profit is different than that of an S-Corporation, partnership, or C-Corporation. The PPP Loan program suggests the money is potentially taxable to bottom line LLC profit if the moneys are allocated to salaries, rent, etc. - exactly the intended purpose. The taxable income, however, can be offset depending on how the moneys are allocated on your income statement. Talk to your tax professional for more details on this issue for potential tax savings. Not every business has the same structure, but it is worth the discussion before forgiving the loan at your bank.