Ron Mueller’s Tax Tip
Ron Mueller is the author of “Home Business Tax Savings Made Easy” and will be the guest on the Cash Flow Show – Home Business Radio this week, Wednesday January 14th.
Ron Mueller’s Tax Tip From The Top
According to a Federal Tax Court ruling parents who run a home-based business – even on a part time basis – can employ their own children as young as 7 years old, to work in their business.
The wages paid by the parent (employer) are 100% tax-deductible as a business expense, and the income earned by the minor child (employee) is 100% tax-free, up to a maximum of $6,300 per-child in 2015.
The type of work and level of wages must both be “age appropriate,” and the deduction must be supported by (a) a written employment agreement, (b) evidence that the work was performed (i.e., timesheets, work logs, etc.), and (c) timely payment of wages by business checks.
This is one of six major tax incentives approved by Congress to stimulate continued growth of the “Micro Business” sector of the American economy.
To learn more about this deduction and the others join us on the Home Business Radio this week, Wednesday January 14th at 8 PM EST.
Dr. Ron Mueller,
Author of ”Home Business Tax Savings, Made Easy!”
“It is not how much you make but how much you keep!”