Physician in Public Service Loan Forgiveness program

[Jason Xenakis]

Hello. My wife and I are physicians that like in CT and work in NY. We plan on purchasing our first out of state LTR. I am enrolled in Public Service Loan Forgiveness (PSLF) program and need to pay 10% of my taxable income towards my student loans. My wife and I file separate because if we filed jointly we would have to pay 10% of our combined taxable income. That said, should we put our real estate investment in my name or hers? I am assuming if the property generates income it would be better in her name. Any help would be greatly appreciated. Thanks.

[Sean Graham]

Quote from @Jason Xenakis:

Hello. My wife and I are physicians that like in CT and work in NY. We plan on purchasing our first out of state LTR. I am enrolled in Public Service Loan Forgiveness (PSLF) program and need to pay 10% of my taxable income towards my student loans. My wife and I file separate because if we filed jointly we would have to pay 10% of our combined taxable income. That said, should we put our real estate investment in my name or hers? I am assuming if the property generates income it would be better in her name. Any help would be greatly appreciated. Thanks.

 @Jason Xenakis happy to help as I can. Some things to think about...

Real estate could potentially decrease your taxable income by way of depreciation. For example, if you use the STR Loophole strategy, then you could potentially use depreciation to offset your physician income which would lower your taxable income and lower the amount paid to PSLF.

If your wife becomes a Real Estate Professional, you could use the depreciation to offset your taxable income if the properties are LTRs.

Overall, with depreciation, your property may not generate any income at all so it doesn't hurt being in your name. In fact, it could actually lower your taxable income...

Happy to chat with you as well. 

[Scott Mac]

Both you and your wife should take the time to schedule a session together with an asset protection attorney who knows Connecticut and New York law.

Good Luck!

[Ashish Acharya]

The Real Estate should be planned so you don't have any taxable income or, even better, wipe out your entire income. Physicians do this a lot. Real Estate can make this happen for you.

[Account Closed]

Quote from @Jason Xenakis:

Hello. My wife and I are physicians that like in CT and work in NY. We plan on purchasing our first out of state LTR. I am enrolled in Public Service Loan Forgiveness (PSLF) program and need to pay 10% of my taxable income towards my student loans. My wife and I file separate because if we filed jointly we would have to pay 10% of our combined taxable income. That said, should we put our real estate investment in my name or hers? I am assuming if the property generates income it would be better in her name. Any help would be greatly appreciated. Thanks.

 Hey Jason, 

Given your situation, it would likely be more beneficial to put the real estate investment in your wife's name since the rental income would then be reported on her tax return. This approach can help keep your taxable income lower, thereby reducing your PSLF payment amount, which is calculated as 10% of your taxable income. By keeping the rental income off your tax return, you can avoid increasing your PSLF payment while still benefiting from the investment through your wife's tax filing.

[Andrew Strauss]

Hi Jason - What i can suggest is create tax projections considering scenarios what if property is in your name and what if it is in wife name and see where you end up paying lower taxes.