How to pay family members and write it off on your taxes

Laura Pitkute is a Real Estate Investor and a mother and in her business she doesn’t just focus on implementing strategies that allow her to make more money, but she focuses on incorporating strategies that will allow her to keep the maximum amount of money that she makes. In this video she will share a strategy that will allow you to keep more of your money by writing-off your family's kids on your taxes.

To implement this strategy you must get your family kids involved in your business by putting them on payroll and paying them a salary. To avoid dealing with employers compensation and FICA when you hire your family kids, 1099 the parent of the child and then the parent will transfer the kids' earned income directly to their bank accounts. When tax season comes around the parent will file a schedule C and write off all of their kids salary as outside labor expense and the parents of the children will not have to pay taxes.

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DISCLAIMER: I (Laura Pitkute) am committed to providing legal and ethical information to the best of my knowledge at all times, but I (Laura Pitkute) am not a certified CPA, nothing I say in this video or comments should be taken as legal advice. Prior to applying any strategies I share in my videos or comments please consult with a competent professional.

[jewelnurse]

Goodness, this is a smart young lady. I’m subscribing and putting my notification on for upcoming videos.

[tulipthorn]

Okay, this I get. I just need to go back and listen to the part where the parent doesn't get stuck paying taxes for it. This is great. Learning new things. Thanks again.

[BraidsByPuffQueenKayla]

I got an L.L.C last year because my oldest wanted to work. We filed taxes on the L.L.C this time . What is my part? I did personal taxes but do I do business taxes now since she filed ?

[jean-simondoiron]

Great content Laura really happy I found your channel! Looking foward to your next video! Keep doing those awesome explanations.

[raulalvarezmerino]

I enjoy watching your video! so much to learn when you think you know it all.

[AimeeMarsh-my]

Very helpful. I don’t have children but I’d like to help my nieces and nephews

[irenereyes]

What if I pay directly to my grandchild for cleaning my office? He is 8 years old...

[losangelesexotic]

Very smart. Can you make a video on how to properly set up an LLC pass-through for tax purposes? I think this would tremendously help your subscribers with the new tax laws going in to effect. This will also save them a great deal of money while getting them organized and educated in the world of business and finance. You're doing an awesome job, keep up the great work! I just joined your channel and I'm already sharing your videos with friends and family👍👍

[growingawareness]

Can you go over the part about buying real estate with a Roth?

[beeman]

I know this is a stupid question but would you please explain all the account options what they are like llc or sole prop. 1099 form schedule c. Please explain I'm new to all this. Thanks

[overlycreative]

This is a great series and you perfectly present the subject. Thumbs up and sub'd.

[saulgoodman]

So would this still apply after these new tax changes?

[tankanghwa]

Laura, what legal reason can you use to pay the parent of the child with 1099? What legal reason can the parent use to write off the money given to the child as business expenses? Does the parent also have to have a business entity (sole prop, LLC, or S corp) to do this transfer?

[taguarilopez]

Can I pay my mother in law and use this strategy to help around the house?

[riperhali]

Does this work if your kid is 18 plus? Or if you cousin/ nephew is out side of USA?

[rashaunraymond]

Laura- if the child is a model for the company product can they be younger than 6 yrs?

[DatGorz]

I love this channel. Please make more videos 🙏🙏

[DavidforHim]

For the parent filing a schedule 'C' and claiming the entire $6K as business expenses --- wouldn't that me unethical? Am I missing something? thanks.

[motivationmadness]

Love your content! Looking forward to the next video!

[nicholascampbell]

You have great information! Thank you!