The smartest move you could make this summer: Paying your kids?

There are (UN)Conventional people that you could be adding on your payroll:

Your kids.

Just listen to this scenario: We have a client with 4 kids. Now, recent studies have shared that it costs approximately $250,000 to raise a child.

So my client was looking at a hefty $1 million dollar “bill.”

But - they decided to take the (UN)Conventional approach and reduce a little bit of that expense…

And found that paying each of their kids $12,000 per year allows them to reduce their taxable income by a whopping $48,000 annually.

But how does that work?

By hiring your children and paying them a fair wage for their work, you can shift a portion of your business income to their lower tax bracket.

This not only reduces your taxable income, but also allows you to take advantage of their standard deduction and lower tax rates.

The cool part most people don’t realize?

The money you pay your children can be used to fund their education, invest in their future, or even help them start their own businesses. It’s a win-win situation - you save on taxes while teaching your kids practical skills about money and entrepreneurship.

Of course - there are some important guidelines to follow when implementing this strategy.

The work your children perform must be legitimate and well-documented, and their compensation must be reasonable for their age and job duties.

So if you’ve got a successful mid 6-figure or bigger business but your kids are slowly draining it… and you’re wondering whether this concept would work for your family, reply to this email.

We can help you navigate the rules and regulations surrounding hiring your children, ensuring that you reduce your tax bill as much as possible while staying 100% compliant with the law.

To your success and financial certainty,

Warm regards,

Dan Nicholson

Founder, Nth Degree CPAs
Author of “Rigging the Game”

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