In this episode, Dr. Friday discusses how small business owners can lower their taxable income by paying their children for legitimate work. Learn how this strategy can benefit your family’s finances.
Transcript:
G’day. I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Lower your taxable income by shifting income to other family members. That works great, especially for self-employed or small business owners. You may have children who are 14, 15, 16, or 17, who are really working for you.
Instead of just paying household expenses through yourself, think about paying those kids. It’s a great lesson for them and a smart tax move for you. Also, consider calculating the value of benefits for educational deductions.
Another tip: if you put something on a credit card, according to tax law, that’s a deduction—not when you pay it, but when you charge it. If you need help and want to talk to someone, just go to drfriday.com.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.