SUMMARY:

If you have kids you know how expensive they can be. From the necessities to all the extras; the toys, the clothes, the entertainment, the extra curricular activities and so on... wouldn’t it be nice to get a brake and be able to write all of those expenses off on taxes?

RECAP OF THE VIDEO:

I am a real estate investor and a mother and in my business I don’t just focus on implementing strategies that allow me to make more money, but also focus on incorporating strategies that will allow me to keep the maximum amount of money that I make. In this video I will share a strategy that will allow you to keep more of your money by writing-off your kids’ expenses on your taxes.

To implement this strategy you must get your kids involved in your business by putting them on payroll and paying them a salary. You can begin to put your kids on payroll as soon as they turn 6 years old and start giving them small jobs such as stuffing envelopes, shredding paper, cleaning, filing, bookkeeping, scanning... By taking this approach not only will you be saving taxes, but you will be teaching your kids small business ownership skills, self reliance and a concept of a job well done.

To be able to pay your own kids, each one of them needs to have their own bank accounts set up and whether you operate as a Sole Proprietor or an LLC you will be paying your kids directly to their bank accounts from your business account if they are under 18 years of age, if they are 18 or older then issue them a 1099 or W2. If you operate your business as an S-Corp then you will need to set up a “Family Management Company” (but is only needed if paying children under 18 years old) which will operate as a Sole Proprietor and pay that “Family Management Company” the kids salary as a fee then transfer the money from there into their bank accounts, but if you have an S-Corp. and you are paying kids that are 18 or older you do not need the “Family Management Company” just issue them a 1099 or W2. The benefit of paying your own kids is that if they are under 18 years of age you do not need to issue workers comp. or FICA (except in Washington) also they will not need to file taxes if you pay them $6350 (in 2017) / year or less.

Bonus [Real Estate Investing] Strategy:
Now that your kids have earned income they can fund a ROTH-IRA which can become a partner in your next LLC which purchases a rental property and when you sell the rental property the money goes back to the ROTH-IRA and comes out tax free for college or retirement.

★☆★ Part 2 of this video series ★☆★
   • How to pay family members and write i...  

★☆★ TO LEARN THESE STRATEGIES GET THE FOLLOWING BOOKS ★☆★

1.) The Tax and Legal Playbook: Game-Changing Solutions to Your Small-Business Questions: TO GET THIS BOOK CLICK THE LINK -https://goo.gl/DKqXTZ

2.) What Your CPA Isn't Telling You: Life-Changing Tax Strategies: TO GET THIS BOOK CLICK THE LINK - https://goo.gl/NxyopY

3.) The Business Owner's Guide to Financial Freedom: What Wall Street Isn't Telling You: TO GET THIS BOOK CLICK THE LINK -https://goo.gl/5vGJKq

★☆★ SUBSCRIBE TO MY YOUTUBE CHANNEL FOR VIDEOS ABOUT REAL ESTATE AND BUSINESS ★☆★

► Financial Literacy/Real Estate Investing/Tax&Legal Course - Please email me at [email protected] for more information.

★☆★ CONNECT WITH ME ON SOCIAL MEDIA ★☆★

FACEBOOK:   / laura-pitko-1464576883611081  
INSTAGRAM:   / laura_pitko  

DISCLAIMER: I (Laura Pitkute) am committed to providing legal and ethical information to the best of my knowledge at all times, but I (Laura Pitkute) am not a certified CPA, nothing I say in this video or comments should be taken as legal advice. Prior to applying any strategies I share in my videos or comments please consult with a competent professional.