Hey y'all, long time lurker. This place is a wealth of knowledge.
So here's my question...
I will be starting practice next week in a private practice (1 other physician) and will be doing so with a hospital income guarantee contract. The contract is very standard, as far as these go, with signing bonus, income guarantee, and certain expenses covered each month. The term is 12 months, and the forgiveness period is 24 months following the end of the guarantee period. The money will be paid directly to me, and I will be paying the group my portion of practice expenses.
I understand how the loan forgiveness works, with the 1099 as income. My big question is that when taxes come due over the next several years (1/24th of loan forgiven each month) will I be able to deduct the money I paid the group for my portion of practice expenses? Just an example: let's say the total I am "loaned" over the 12 month period is $200,000. Half of that is salary, and half of that is my portion of expenses. When the loan is forgiven I will have $200,000 in "income". However, only half of that money was actually income, the rest was expenses. I would assume that all the expenses could be written off?
Thanks for any help!
So here's my question...
I will be starting practice next week in a private practice (1 other physician) and will be doing so with a hospital income guarantee contract. The contract is very standard, as far as these go, with signing bonus, income guarantee, and certain expenses covered each month. The term is 12 months, and the forgiveness period is 24 months following the end of the guarantee period. The money will be paid directly to me, and I will be paying the group my portion of practice expenses.
I understand how the loan forgiveness works, with the 1099 as income. My big question is that when taxes come due over the next several years (1/24th of loan forgiven each month) will I be able to deduct the money I paid the group for my portion of practice expenses? Just an example: let's say the total I am "loaned" over the 12 month period is $200,000. Half of that is salary, and half of that is my portion of expenses. When the loan is forgiven I will have $200,000 in "income". However, only half of that money was actually income, the rest was expenses. I would assume that all the expenses could be written off?
Thanks for any help!
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