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Hello, are you the only shareholder in the S-Corporation? Are there other employees? Are there other doctors?
Assuming that you are the only shareholder and you pay yourself $140,000 there will still be a large amount of income that will pass thru from the S-Corporation. This will likely take you over the limits to be able to deduct student loan interest.
Would the $140,000 be considered reasonable? If you are the only employee and only doctor, it may be hard to justify a salary of only $140,000. If there are other employees a salary of $140,000 sounds reasonable. What are the risks if it is determined to be unreasonable? The risk is that the IRS would reclassify some of the pass thru income as wages. This amount would be subject to payroll taxes which (since FICA would be maxed out) would be 3.9% of the adjustment. Please let me know if you have additional questions or need clarification.
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