Keep What You Earn How to Hire Your Kids to Generate Tax Free Wealth
We'll be discussing a unique strategy that can help you generate tax-free wealth: hiring your kids. Not only is it legal, but it also saves you money on taxes. You'll save on taxes and your child will be earning a paycheck. What's not to love?
But how do you implement this strategy properly from a tax perspective? I'll share some insights to help you get started and address which types of businesses can benefit from this approach, and how to work around this limitation if your business is not aligned.
What you'll hear in this episode:
[0:50] Is paying your children in your business legal to help save on taxes?
[1:45] Why is $12,000 the number that always shows up to pay your kids?
[3:20] Why should someone take advantage of this opportunity?
[5:00] How do you actually implement this strategy properly from a tax perspective?
[7:30] Who can take advantage of this strategy? What types of businesses can take advantage of this?
[10:00] How does this actually save us money in taxes?
[11:45] What should you do with the money that your kids earn?
[14:30] What you need to do if you're ready to implement this approach.
* Related episodes:
Coaching Kids and Families Around Money with Andrew Hovelson
The Hidden Costs of Not Hiring a Tax Pro
* Find everything you need at https://www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/
* Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa
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* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.