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.

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Answered on 4/29/13, 11:18 am


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