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Salary guarantee from Hospital

I have an offer from a local hospital to help me in my first year joining an established doc's practice. Apparently it is a fairly standard loan in exchanging for staying in the area for 3 years. I pay taxes when I pay it back. The loan apparently goes from month to month. Is there a website or text somewhere that explains this arrangement in some detail, and how to get the most out of it? And should I hire an accountant to keep track of my accounts receivable that first year? Thank you!!

Zip Code: 94122

Re: Salary guarantee from Hospital

I've seen this arrangement a few times with my clients - mostly for people setting up a practice down at Cape Cod.

What I've seen is that you're not taxed as you receive the income guarantee - since it's considered a loan.

As you fulfill the terms of the loan, you're taxed as the loan is forgiven.

Or if you need to pay back the loan, you're essentially taxed as you repay the loan. That's due to the fact that you need to generate profits through the practice to provide the cash to pay the loan. Unfortuntately, even though those profits aren't going into your pocket, and instead are going towards your debts, you pay taxes as if you got the money.

I'm not sure where you can get additional information about this transaction. It probably makes sense to meet with a local CPA, who can help you plan for the taxes that you'll ultimately need to pay on this income guarantee. Check out www.mdtaxes.com/offices.html to find the San Francisco CPA affiliated with The MDTAXES Network.

Zip Code: 01801