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income guarantee loan tax question

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  • income guarantee loan tax question

    I joined a private practice with the help of one of the local hospitals this past July. It was done through a typical 1 year income guarantee with 2 year forgiveness model. Fortunately, practice picked up quickly and my collections have already surpassed my guarantee and expenses and I am paying back what was loaned.

    I received a 1099-MISC from the company responsible for handling the contract with the outstanding amount of the loan entered in box 6 under Medical and health care payments. My question is how am I supposed to handle this money? It is not income, but a loan which I am in the process of paying back. Any outstanding balance becomes income as the loan is forgiven at the end of the 1 year contract. Am I missing something here?

    I appreciate any help!

  • #2
    On the surface, it doesn't sound right if the loan hasn't been forgiven, but it really depends upon the terms of the contract you signed and the way it is worded.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087