Paying Your Children Through Your S-Corp or LLC: A Strategic Guide
Employing your children in your S-Corp or LLC can provide substantial financial and tax benefits. This strategy allows you to reduce your taxable income while offering your children valuable work experience. By paying your children a reasonable wage for actual work performed, you can shift income to a lower tax bracket and benefit from deductible wages as business expenses. However, it’s crucial to ensure compliance with IRS regulations regarding reasonable compensation and proper documentation. This guide explores the key considerations, benefits, and steps to effectively implement this strategy in your business.
Understanding the Augusta Rule: A Tax-Saving Strategy for Homeowners
The Augusta Rule, named after Augusta, Georgia, offers a unique tax-saving opportunity for homeowners. This provision allows homeowners to rent out their residence for up to 14 days a year without having to report the rental income on their federal tax return. Discover how the Augusta Rule works, its benefits, and how you can take advantage of this tax-saving strategy.