I'm a physician with a question
Posted: Sun Apr 17, 2011 4:27 pm
Can a physician use his gross income to buy real estate that is not necessarily related to his practice, to minimize his taxable income?
For example: a solo family doctor makes $300k a year in gross collections. He uses $200k to buy another office building. He rents out that building to another family doctor for $20k a year. Assuming he has no other overhead, does this mean he only pays taxes on $100k+$20k per year?
What if he rents his building out to a chiropractor instead, does that change whether or not he can avoid paying taxes on that $200k for the building? What if the other person renting out the building were completely unrelated to the medical field?
Thanks guys.
For example: a solo family doctor makes $300k a year in gross collections. He uses $200k to buy another office building. He rents out that building to another family doctor for $20k a year. Assuming he has no other overhead, does this mean he only pays taxes on $100k+$20k per year?
What if he rents his building out to a chiropractor instead, does that change whether or not he can avoid paying taxes on that $200k for the building? What if the other person renting out the building were completely unrelated to the medical field?
Thanks guys.