Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[This wouldn't save you in self employment taxes, because you will just be paying
their SS taxes. But you will save a lot in income taxes for his profit will be
reduced by ~$9,700. And thus his savings would be his tax rate times that

One of the additional beautiful things about this strategy is that the kids DON'T have to pay any FICA taxes...either employer or employee long as they are under age 18. And they don't have to pay any FUTA (fed unemployment payroll taxes) if they are under age 21.

It's really a nice deal.

TMF Taxes
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.