Discussion:Timing in recognizing income
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Timing in recognizing income
| 8 October 2007 | |
| A physician is employed by a medical practice from out of state. He received a recruitment incentive from the hospital where the medical practice is located. The incentive is an advance payment to the physician where if the physician stays for 2 years, the advance will be forgiven. There is a promissory note signed on the advance. The physician has no obligation to the hospital other than staying in the area for 2 years. The advance to the physician was made in the form of a loan repayment to physician's old student loan.
Is this advance a loan and we would recognize income upon cancelation of the loan or do we need to recognize income now and take a deduction later if the physician does not fullfill his obligation and have to repay the hospital? | |
To join in on this discussion, you must first
log in.
