![]() Documents required if using quarterly gross receipts It’s best to complete these forms with a tax professional. Your tax return doesn’t need to be filed, but will need to be complete. If you are comparing your gross receipts in 2020 to those in 2019, you must provide tax returns for both years when applying for forgiveness. At first glance, he thinks he’s ineligible-until he looks at his quarterly earnings.ĭocuments required if using annual gross receipts When looking at his annual numbers, his business recorded $200,000 in gross receipts in 2019 and $180,000 in 2020. But now, Bixby’s business needs more funds to make it through to spring. Using quarterly gross receiptsīixby’s Farmer Bees Honey received a PPP loan in 2020 that was fully forgiven. That’s a drop in revenue of 50% between 20.īecause Toni’s business saw a greater than 25% reduction in revenue on the year, she is eligible for a second PPP loan. When she checks her records, she sees $500,000 in gross receipts recorded in 2019. In looking at her year end financials, Toni sees that her business recorded $250,000 in gross receipts in 2020. ![]() Toni is now looking to apply for a second draw PPP loan. Toni’s Temporary Tattoos received a PPP loan in 2020 and applied for forgiveness in December of the same year. ![]() Revenue reduction calculation examples Using annual gross receipts You can also find your gross revenue and returns and allowances by looking at your income statement.ĭo not include any relief received in 2020 in your gross receipts. You can find your gross receipts by looking at line 1 or 1C of your respective tax return. “ Receipts means all revenue in whatever form received or accrued from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances.” The SBA provides a detailed explanation on what’s included in gross receipts: Gross receipts is the total amount of money your business has received in a given period. The 25% reduction can be shown using Q2, Q3, or Q4 2020. You must use Q1 2020 as your comparison period. If a business started in 2020 and was operational on February 15, 2020, it is eligible for a second PPP loan. ![]() Comparing gross receipts in a quarter of 2020 with that same quarter in 2019. ![]()
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