#17: Hiring Your Kids: Tax-Saving Strategy or Really Risky Move?
Description
Maximize Tax Benefits by Employing Your Children: Key Strategies and Pitfalls
https://www.incite.tax
In this episode of 'Real Estate is Taxing,' host Natalie Kolodij delves into the strategy of employing your children in your business.
She outlines the numerous benefits, including significant tax savings and the opportunity to fund a Roth IRA at an early age. Natalie also discusses crucial compliance requirements to avoid costly mistakes, such as treating the children as actual employees, paying reasonable wages, and issuing W-2 forms instead of 1099s.
The episode provides essential guidelines to help business owners implement this strategy correctly and reap the financial advantages.
00:00 Introduction to Real Estate Taxing
01:41 Why Employing Your Children is Beneficial
02:29 Tax Benefits of Employing Your Children
08:17 Common Mistakes to Avoid
13:50 Entity Types and Payroll Taxes
14:55 Proper Documentation and Compliance
23:59 Recap and Final Thoughts
United States
