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I would put a lawyer on retainer .
They are cracking down on scams . The poster better damn well own a running business .
 

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Discussion Starter · #24 ·
I would pay myself back all the money that Uber and Lyft have stolen from me... Well a good portion of it anyways馃槀
I already got a $10k UBer settlement from a class action lawsuit a couple years back. Still have the money, or most of it. The lawsuit forced Uber to pay us the money they stole. 'twas sweet.
 

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Discussion Starter · #25 ·
Good luck.
I thought of it when it was first available, but I didn't have the guts to go through with it.
If It works for you..... Good!
Why not? If you had to pay it all back, worst comes to worst, just pay it back with the proceeds, and don't spend it, the interest is so low, it's hardly anything. That's worst case scenario. In the meantime, it's a nice feeling with all that dough in the bank. I mean, all i dide was upload my schedule C and use line 7 as the basis for calculations, per SBA instructions for us independent contractors. Just be honest. Either they will send you the money, or you will be denied. I was denied the first time I tried. I tried with Womply and got denied. The second time I went through my own bank, which had a PPP SBA portal, and I got approved.
 

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As long as it's spent on paying your employee, there's no risk of it not being forgiven. And you can borrow up to 2.5 months of your 2019 self employment income and have it be forgiven no questions asked.

One of the biggest issues most uber/lyft drivers will run into is that the PPP loans are based on your 2019 taxable profit, which for most of the drivers is zero-near zero.

The only documentation i had to provide was my 2019 tax return. Then i got 2.5 months of my taxable profit. I just stated on the form that I used the money to pay myself. They have a form specifically to do this.

The intention of setting up the PPP loan for 1099 workers was to make the PPP loan eligible for 1099 workers who had their incomes gutted, while not putting them 100% out of business.
almost right.
PPP loans are based on gross income

My first PPP loan application required me to submit 鈥減roof鈥 of my 2019 income and they accepted a schedule C or bank statements. My schedule C wouldn鈥檛 qualify me for a loan, because my bottom line net taxable in come was less than zero. So I submitted 12 months of bank statements I circled every Uber and Lyft deposit as well as every cash deposit with the statement that the only cash I ever get is from cash tips and cash private rides. I also circled deposits from my credit card processor noting that I accepted credit cards from my private ride customers

I added it all up and my loan was based on the total of everything I circled

the sba has changed the application for forgiveness and the documentation required several times. The most recent requirement was for a really short form where I stated all the money was used for payroll (owner compensation). No documentation was required. I just got a notice from the bank that they have reviewed my application and submitted it to the SBA I expect the final decision on forgiveness soon (the sba has 90 days to decide

I also applied for a second round PPP loan. This time all they would accept to document earnings was a schedule C. That application was denied because my bottom line was less than zero. But then they changed the process. They were looking at gross income not net taxable income. So I submitted a new application and it was just approved. As soon as I know the process ill
 

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I would use it to pay off the car, that's your largest business expense. Then if for whatever reason it isn't forgiven, you simply pay it back with the money that would have gone toward vehicle expenses.
PPP loans are forgiven if you use the money for certain specific purposes (mostly payroll) and a car wouldn鈥檛 qualify

However for sole proprietors or one man LLCs owner compensation is considered payroll. So the way you apply for forgiveness is to say the loan was used for owner compensation.
So essentially you pay yourself which qualifies you for forgiveness. Then once the money is yours, you can use it for anything (like paying off the car)

understand I am not a lawyer or tax accountant or an expert of any kind, but I have received 2 Ppp loans and applied for forgiveness of one of them. The forgiveness application does not ask for anything except a statement that I used all the money for owner compensation
 

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Don't you have to be able to prove that your business was adversely affected by the pandemic, if you get audited?
 

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I鈥檓 sure the answer is yes.
And mine was. My 2020 income was less than my 2019 income. And I suspect that was the case for most of us

however they didn鈥檛 ask for documentation of that and although I have the documentation I doubt that any audits will be done on the smaller loans. One of the questions on the application for forgiveness is. Was your loan or loans in the case of multiple companies under one ownership. Over $2 million. Mine wasn鈥檛. I think they will look at some of the big boys, but probably not the small loans
 

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You essentially are correct. The payroll detail is as follows which could affect some people.:

For simplicity sake I'll just use a simple RS driver example, not the entire program. Payroll costs are broken up into 4 different categories for PPP foregiveness:
  1. Payroll Compensation (W2 employees, not you)
  2. "Owner" compensation
  3. Benefits such as Medical insurance.
  4. Payroll taxes
As the "owner" you are subject to separate rules than for W2 employees. Essentially, the owner is capped at 2.5 months of qualified compensation or $20,000 whichever is lower during the qualified period. For 99% of RS drivers the qualified period they should use the minimum period or 2.5 months. In other circumstances outside of a single prop RS driver that period could be 24 weeks and this is where the owners cap comes into play. For most this should be as simple as the amount you were approved for.

So if you were an "owner" using owner compensation only then 98k would be $20,416 so yes your caclulation is correct. Just remember that each case is different but the scenario as you described it would be true for most RS drivers I'm guessing. However, some other scenarios exist.
You essentially are correct. The payroll detail is as follows which could affect some people.:

For simplicity sake I'll just use a simple RS driver example, not the entire program. Payroll costs are broken up into 4 different categories for PPP foregiveness:
  1. Payroll Compensation (W2 employees, not you)
  2. "Owner" compensation
  3. Benefits such as Medical insurance.
  4. Payroll taxes
As the "owner" you are subject to separate rules than for W2 employees. Essentially, the owner is capped at 2.5 months of qualified compensation or $20,000 whichever is lower during the qualified period. For 99% of RS drivers the qualified period they should use the minimum period or 2.5 months. In other circumstances outside of a single prop RS driver that period could be 24 weeks and this is where the owners cap comes into play. For most this should be as simple as the amount you were approved for.

So if you were an "owner" using owner compensation only then 98k would be $20,416 so yes your caclulation is correct. Just remember that each case is different but the scenario as you described it would be true for most RS drivers I'm guessing. However, some other scenarios exist.
Question. I got $9000.00 a couple of weeks ago for my first PPP loan. I put it in a checking account separate from my personal checking account. Do I start writing checks to myself every let鈥檚 say every 2 weeks for owner compensation until the money is gone?
 

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Question. I got $9000.00 a couple of weeks ago for my first PPP loan. I put it in a checking account separate from my personal checking account. Do I start writing checks to myself every let鈥檚 say every 2 weeks for owner compensation until the money is gone?
Just to clarify, when you say for my first PPP loan do you mean for PPP 1 from last year or PPP 2 from this year but it's your first PPP?

You do not have to write checks to yourself on a regular basis. You can do it anytime you want over the next 2.5 months in any amounts adding up to 9,000, or in 1 lump sum. If you want to be extra thorough in the memo on the check write "owner's compensation". Odds are you will never even have to document any of this but if you do you will be totally covered. The important thing is just do it within 2.5 months from the date you received the money as that is the official start of the loan.

Later, you will apply for the PPP loan forgiveness using Form 3508S and going thru the bank you received the loan from.
 

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Just to clarify, when you say for my first PPP loan do you mean for PPP 1 from last year or PPP 2 from this year but it's your first PPP?

You do not have to write checks to yourself on a regular basis. You can do it anytime you want over the next 2.5 months in any amounts adding up to 9,000, or in 1 lump sum. If you want to be extra thorough in the memo on the check write "owner's compensation". Odds are you will never even have to document any of this but if you do you will be totally covered. The important thing is just do it within 2.5 months from the date you received the money as that is the official start of the loan.

Later, you will apply for the PPP loan forgiveness using Form 3508S and going thru the bank you received the loan from.
It鈥檚 PPP 2 from this year. My first PPP.
 

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Just to clarify, when you say for my first PPP loan do you mean for PPP 1 from last year or PPP 2 from this year but it's your first PPP?

You do not have to write checks to yourself on a regular basis. You can do it anytime you want over the next 2.5 months in any amounts adding up to 9,000, or in 1 lump sum. If you want to be extra thorough in the memo on the check write "owner's compensation". Odds are you will never even have to document any of this but if you do you will be totally covered. The important thing is just do it within 2.5 months from the date you received the money as that is the official start of the loan.

Later, you will apply for the PPP loan forgiveness using Form 3508S and going thru the bank you received the loan from.
Much Thx
 

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PPP 2 is the one that uses your gross income which it appears they did since you said $9,000. PPP 1 was when they used the net income
 

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PPP 2 is the one that uses your gross income which it appears they did since you said $9,000. PPP 1 was when they used the net income
Ive said this here before. so apologies for repeating myself

Gross compensation (what goes on line 7 of your Schedule C) includes the money Uber and Lift take out of what the customer pays. so its a big number and more than we actually take out of our business, but its the number that they are using for the second round of PPP loans, As a result

Regarding the 1st round of PPP loans: I applied through Pay Pal and they provided a worksheet to help with the actual application. They asked for documentation of income which I assumed would be a schedule C but their work sheet had this instruction

"If you havent filed 2019 Tax Returns, consider these forms of verification".
1) payroll processing data
2) bank statements
3) receipts
4) Other verifiable....


I chose to use bank deposits, I printed all 12 monts of my bank statements....(120 pages) I circled every deposit from Uber and Lyft, as well as every cash deposit and every deposit from my credit card processing company and I added a note that totaled it all and explained that the cash and credit card deposits was income from private rides and cash tips

That info was accepted as documentation of my income from 2019 and was the basis for the approval of an $11500 PPP loan


The point of repeating this is correct what you said in the post I quoted
PPP-1 actually used gross income too, as long as you could document it from something other than a schedule C
 

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Why not? If you had to pay it all back, worst comes to worst, just pay it back with the proceeds, and don't spend it, the interest is so low, it's hardly anything. That's worst case scenario. In the meantime, it's a nice feeling with all that dough in the bank. I mean, all i dide was upload my schedule C and use line 7 as the basis for calculations, per SBA instructions for us independent contractors. Just be honest. Either they will send you the money, or you will be denied. I was denied the first time I tried. I tried with Womply and got denied. The second time I went through my own bank, which had a PPP SBA portal, and I got approved.
If you don鈥檛 know what to do with that money , you definitely DO NOT NEED IT .
 
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