If you are a sole proprietor, you know that the 15.3 percent self-employment tax can eat up your profits in a hurry.
You may be able to use a simple strategy to ease this tax burden.
If you own an office building or other assets, you can set up a rental arrangement with your spouse that will significantly cut your self-employment taxes.
How the Strategy Creates Cash
Suppose you operate a sole proprietorship and you earn $100,000 of net income.
You must report your income on Schedule C of your tax return, which creates a self-employment tax ... Log in to view full article.