If you have a home based business, you have just two months to capture this deduction for 2019.
Year after year, I put this out, but very few people take advantage of it. Paying your children is a very old concept, but it keeps getting better every year.
For years starting in 2018, you can pay your child up to $12,000 per year virtually tax free if you are a sole prop and your children are between 7 and 17.
There are, of course, a few rules to abide by. You have to
1.) Pay them for doing things in your business. This includes washing your car that you use for business, cleaning your house that you use a portion of, cutting grass, shoveling snow, etc.
2.) Pay them by check into their bank account
3.) Issue them a w-2 or 1099 at the end of the year and file a tax return
4.) Keep a time sheet
The whole $12,000 is tax free for federal, but some state & local tax may apply.
You can save up to $3,600 per year per child as a max, and the average person will save about $1,800! What will you do with your $1,800?
You see, people ask me how to write off my kid’s braces, school tuition, etc. Well, when you pay your child to work in your business, the $12,000 you pay them (that you get as a deduction) is used to pay their expenses. So, in fact, you have written them off!
If you find yourself towards the end of the year, just start paying them regularly, then give them a big Christmas bonus to catch up!
The BIG question is…will you do it? Will you do what is needed to be done to get the $1,800 or $3,600?
If you want to get every deduction available to you as a home based business owner, visit my online portal by CLICKING HERE and see how trading a small amount of money will get you thousands EVERY year!