USA seller finance buy-in

[strom1970]

As a medical professional, I bought into a practice several years ago. This practice is a S-corp. My portion of the company (33.33%) is owner financed by the two previous and current owners. I receive full benefits of the ownership and equally share, by my percentage, all proceeds of the business. I have been paid my annual salary plus excess earnings of the business either by draw or by bonuses on payroll. The issue is that I expose myself to the IRS for all profits, but still have to make substantial payments to the other members to pay my loan, thus increasing my effective tax exposure substantially and reducing my personal cash flow.. Obviously, the best answer is to make more money , but that is not so easy. Currently, interest paid is shown on a 1099. The question is: Can I pay the loan with extra bonuses paid to the two owners inside the company? example : Allow the two partners to take my loan payments out of excess earning , then I take my 1/3 of the leftovers. This would effectively reduce my gross earnings , reduce my tax burden , but increase my personal cash flow. I would likely have to make up the difference to the other owners in their tax percentage? capital gains vs regular income Not sure if this makes any sense? Accounting is more complicated than surgery to many of us.