Incorporating?
My husband and I are real estate agents. How can we reduce the taxes we have to pay? We are also going to start buying properties, flipping some and renting out some. Would it be safe to incorporate ourselves online? Also, would this save us any taxes as far as the commissions earned as agents? We need help!!
I had the same problem years ago so what I did was:
1. I figured out how much my monthly payments were on my consumer debts and then gave my 2 kids part time jobs working for me, with there salaries being equal to my monthly consumer debts.
Example: Monthly consumer debt-$1500.00
Kid #1 salary-$800.00
Kid#2 salary- $700.00
Then I had both of my kids pay all of my consumer debt from their bank accounts. Not only were their salaries totally tax deductible as a business expense, the $1500.00 was money which came out of the family budget anyway.BTW both children gained work experience.
Quote:
On 2005-07-18 14:04, say wrote:
My husband and I are real estate agents. How can we reduce the taxes we have to pay? We are also going to start buying properties, flipping some and renting out some. Would it be safe to incorporate ourselves online? Also, would this save us any taxes as far as the commissions earned as agents? We need help!!
cool advice, but you will have to do payroll for the kids just like any other company does that stuff.
Since they are your kids, you do not have to pay payroll tax or social security tax.
Quote:
On 2005-07-21 14:32, Eric5 wrote:
cool advice, but you will have to do payroll for the kids just like any other company does that stuff.
why is that?