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W2 and ASC income

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  • W2 and ASC income

    Long time lurker, first time poster. I am a W2 employed surgeon and going to invest as a partner in an ASC which is an LLC and a separate entity from my employer. Employer is OK with it.
    1) Is there any way to deduct the interest from my loan that I will take out to buy in? Wondering because I could just pay in the entire buy-in without a loan by raiding my taxable account but if there are deduction benefits from having the loan then would consider financing it
    2) Can I open up an individual 401k with the distributions? I am already maxing out all my W2 retirement accounts and other available options (401k, 457b, HSA, backdoor Roth IRA x2, 529s) and am looking for additional retirement options.
    3) Could I take advantage of other tax deductions like home office, CME, office supplies, etc that I could not do with just my W2 income but could with the K1 distributions assuming they are related to my work with the surgical center? In other words, do K1 distributions function like a 1099 for a side gig?

  • #2
    1. Yes
    2. No
    3. No

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    • #3
      Originally posted by abds View Post
      1. Yes
      2. No
      3. No
      In a similar situation, considering ASC investment, and wondering if there are any other tax benefits. Right now, I am W-2 income only and paying a ton of taxes as the only pretax vehicle I have is 401(k).

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      • #4
        Originally posted by SEC Doc View Post

        In a similar situation, considering ASC investment, and wondering if there are any other tax benefits. Right now, I am W-2 income only and paying a ton of taxes as the only pretax vehicle I have is 401(k).
        None that I’m aware of. It would be awesome if someone chimes in to prove me wrong though.

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        • #5
          Originally posted by abds View Post
          1. Yes
          2. No
          3. No
          Regarding q3, there is a possibility of UPE (Unreimbursed Partner Expenses) deduction if the Partnership Agreement is appropriately worded (which is kind of a gray area).
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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