Question

I recently signed up for your newsletters and am really enjoying them. At the moment, I’m focused on the few discussions on hiring your kids and the tax advantages of doing that, such as no payroll taxes when the sole proprietor hires his or her children under the age of 18 and the ability for the working children to contribute to regular or Roth IRAs.

Are there rules on substantiating a reasonable pay for their services or can you arbitrarily pay them any amount regardless of how much (if any) work they actually do for you? ... Log in to view full article.