WHAT ARE GROSS RECEIPTS CODE
WHAT ARE GROSS RECEIPTS LICENSE
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Taxpayers who have received PPP loans and subsequent loan forgiveness need to segregate and/or note the removal of the loan proceeds from the income recognition calculation for accounting purposes when doing their BPOL returns. 58.1-3732 specifically cites loan proceeds.Д«ased on these provisions, the Commissioner has held that loan proceeds from PPP are not to be considered вЂњgross receiptsвЂќ for purposes of BPOL вЂњregardless of whether some part or all of such loans are forgivable or not.вЂќ 58.1-3732 (A) which states that gross receipts вЂњshall not include any amount not derived from the exercise of the licensed privilege to engage in a business or profession in the ordinary course of business.вЂќ One of the exclusions cited in Va.

WHAT ARE GROSS RECEIPTS LICENSE

The ruling hinges on whether the PPP loan proceeds result from вЂњthe exercise of the licensed privilegeвЂ¦in the ordinary course of business.вЂќ The ruling states that вЂњloan proceeds are not received by вЂњexercising the license privilege to engage in the ordinary course of business, by for example, providing services or selling goods in the ordinary course of business.вЂќ In further support of the decision by the Commissioner that PPP loan proceeds are not included in BPOL вЂњgross receipts,вЂќ the Commissioner cites Va. Gross means without deductions, so gross receipts refer to the total amount of considerations received in exchange for property or services sold, leased or rented during a given period before. Under BPOL regulations, вЂњGross receipts are defined as вЂњ he whole, total, entire receipts, of money or other considerations received by the taxpayer as a result of transactions with others besides himself and that are derived from the exercise of the licensed privilege to engage in a business or profession in the ordinary course of business.вЂќ and the BPOL regulations provide the only authority to determine вЂњgross receiptsвЂќ for BPOL. The purpose of this Tax Fact is to provide general guidelines and examples of what is included in a retailers gross receipts. The Ruling notes that, while the CARES Act specifically created an exclusion from the definition of income for purposes of income tax, that determination under the CARES Act is not dipositive for purposes of BPOL.

WHAT ARE GROSS RECEIPTS CODE

Generally, loan forgiveness would be considered income under Internal Revenue Code Sec.В 61(a)(11).

Under certain circumstances, the loan proceeds would not have to be repaid, and the loan would be forgiven. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed in March 2020, loans were made to taxpayers under the Payroll Protection Program (PPP). The Virginia Department of Taxation has issued a ruling that addresses the question вЂњdoes the receipt of a PPP loan and its possible forgiveness constitute gross receipts for purposes of the Business, Professional, and Occupational License (BPOL) tax?вЂќ

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What are gross receipts