Kohari Gonzalez Oneyear & Brown CPAs & Advisors

Cash Profit

“I received a grant from the local government to keep my small business open, is this cash injection considered taxable income by the IRS?”

Life eventQuick Question · 30 min · $95

A government grant used to support a small business is often treated differently depending on how the program was structured, what the funds were intended to cover, and how the business accounted for the money. The IRS may look at whether the payment functioned more like a subsidy, a reimbursement, or general operating support, and whether any related expenses were deducted elsewhere. The timing of receipt, the source of the grant, and any reporting documents issued can also affect the tax treatment. In many cases, the details of the local program and the business’s records matter as much as the label on the payment. A targeted review with a CPA can turn the uncertainty into a clear next step.

In your 30-minute session, the KGOB advisor handling it will:

  • Read your exact situation and tell you, in plain English, what’s actually going on.
  • Lay out your options and the trade-offs — no jargon, no judgment.
  • Give you a clear next step you can act on, whether that’s with us or on your own.
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This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.

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