Legal Question in Family Law in Massachusetts
I am an Associate Dentist and have been Divorced for 2 years in Mass. I want to buy my employers dental practice but the 7% interest charges on the 5 year loan from him will be substantial. I know they will be deductible for tax purposes, but are they considered a deductible expense for Child Support and Alimony calculations?
Thanks
Dave
Asked on 4/29/13, 10:07 am
1 Answer from Attorneys
The interest should be treated as ordinary business expense as well as any depreciation on equipment, good will or anything else. Principal Payments will not be considered a deductable expense.
It might be worthwhile to create a PLLC so there is no argument as to what your net earnings are.
If you would like assistance with the purchase and/or the divorce issue, please feel free to contact me.
Answered on 4/29/13, 11:18 am