How to Hire Your Kids to Generate Tax Free Wealth
Apr 26, 2023We'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.
They key takeaways from this episode are:
1. Hiring your kids can generate tax-free wealth: Hiring your kids is a unique strategy that can help you save money on taxes and allow your child to earn a paycheck. The podcast explains how this strategy can be legal and beneficial for your business.
2. Proper implementation is important: The podcast provides insights on how to implement this strategy properly from a tax perspective. It addresses the $12,000 threshold and how to work around limitations for businesses that may not align.
3. Benefits and practical considerations: The podcast highlights the benefits of taking advantage of this opportunity and how it saves money on taxes. It also covers what to do with the money earned by your kids and what steps you need to take to implement this approach.
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
Resources:
Connect with Shannon:
Attend The CFO Accelerator Live: https://www.thecfoaccelerator.com/shannon
Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/
Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa
Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so
Hire us: https://www.fitnancialsolutions.com/accounting
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Find me on IG @shannonkweinstein
Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html
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.
