Tax Guru-Ker$tetter Letter

Thursday, April 10, 2003

Family Employees

As humorous as this may seem, there are several very lucrative tax breaks for hiring your kids to help out in your business. Besides deducting what you pay them, the kids under 18 are exempt from payroll taxes and you can deduct their employee benefits, such as medical and school costs. Payments for any kind of business support services, including filing and cleaning work, are perfectly valid deductions. With a closely held corporation, many of these tax breaks can be doubled. If you have kids and a small business and are not claiming these deductions, you are literally throwing away thousands of dollars every year. There are also lucrative business deductions available for animal helpers, such as pest control handled by feline friends and security services by canine companions.

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 4/10/2003 09:35:00 PM Send this post: