If you want a small business and you have kids 18 or over you might be still helping them with life expenses
Or they may be helping you directly in your business everyday
Whatever the case may be. There's a great tax strategy of getting those older kids on the payroll
Okay, easy tax strategy quit paying taxes in giving your kids money put them on the payroll or 1099 and
Save taxes let them pay their own taxes in a lower tax bracket. That's the concept. It's that easy now
I'm gonna hit the highlights
I've got more videos on my website a tax and legal library
books all sorts of articles on this
So you want to educate yourself on this if your accountant isn't telling you about this strategy?
Here's the basics if you've watched my videos before we're gonna have your life into two sides
Operations and holdings or assets so you might have an LLC with some rental property
you might have an operational entity sole proprietorship or LLC and
Typically, you're gonna have an S corporation. That's where my clients live and resign and save a ton in tax topics for another day
But for those kids 18 and over we're gonna want to give them a 1099
That is our easiest and best strategy
you might give them a 1099 from your
operational entity sole proprietor LLC or S corp where you want to be nine times out of ten or
Directly out of an LLC that holds rental properties
Maybe one of your kids is acting as the property manager on one of your rentals where they live
So your kids could be at college living in one of your rental properties managing the rental property and getting paid at 1099
To manage it. So therefore you're getting a tax deduction one quick example here - when my older kids call me up and go
Hey, Dad, I need help with tuition or my car broke down
I don't give him money my company pays them for their services and I get a tax write-off
Then they go use the money for tuition or to fix their car
So you just change the way you're doing this you don't have to be rich to do this
Just change the method now. You may say well my kids don't help in the business
Oh, they better because I want a board of directors a Board of Advisors, whatever you want to call it. I call it
generally a Board of Advisors and when we set up an LLC for a client
We create that board when we set up a corporation
We create that board and this is a board where you're gonna meet
Quarterly or annually having a family board meeting talking about the business
You can even have this in an LLC Board of Advisors to help manage your ongoing real rental property investment
So it's very very simple now kids may still be involved in your marketing and your bookkeeping on your social media
My kids have helped in my business in all sorts of ways
They may be a janitor in your for your building or do construction clean-up on your rehabs or whatever
think of ways that your kids can be involved in your business now at Christmas you give them a gift they're gonna love a
1099 under the Christmas tree Oh special put it in their stocking. They're gonna love it
But anyway, take a tax write-off and then help your kids pay their taxes in a different bracket
So they're gonna file a 1040 maybe even a Schedule C
Because they're gonna have a little small business helping support you so there's all again lots of details here
It's a concept you need to talk about with your accountant my accountants and my accounting firm helped all of our clients in this situation
maximize this write-off
Again, the kids they don't even pay income tax on the first twelve thousand two hundred dollars twelve thousand two hundred dollars in 2019
The standard deduction has been blown up. It's bigger use it take advantage of it
This is going to help you better live your American dream and teach entrepreneurship to your kids
Thanks so much for watching that video and I want to be your source for tax and legal strategies
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Probably 70 plus videos 30 plus hours of content that'll save you thousands