Looking for an answer to this question:

Setting up an S-Corp for medical practice and based on the business plan obviously there will be several months at the beginning where the Corp runs at a loss.

I'll be the 100% shareholder and also working in the practice. I plan to defer my income until the break-even point for the S-Corp and then start drawing my salary.

My plan was to count the deferred salary as a loan to the Corp with a repayment interest of 10% over a fixed term of 3 years once the Corp is in postive cash flow.

For example: If I assume that the fair-market salary for an MD in my speciality is $15,000/ month, I plan to defer the first 10 months of salary - or $150,000.

I'm assuming that this then shows up as a liability to the Corporation separate from the Owner Start-up Capital.

Does this liability then get calculated as a loss for the tax year or is it carried over until it starts to be repayed.

I'm assumed the deferred income doesn't count as income on my individual return until I receive a pay out in 2010. Correct?

Is there a better way to construct this set up for tax purposes?

What happens if I forgive the loan to the Corporation?

What's the best way to account for this on the Corp side and on the individual tax side? I've been given a couple of answers that seem to widely vary.

Thanks

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