 16 Yr Old Helper (by Rich [PA]) Jul 17, 2019 2:11 PM
 16 Yr Old Helper (by Landlord ofthe Flies [TX]) Jul 17, 2019 3:04 PM
16 Yr Old Helper (by Busy [WI]) Jul 17, 2019 3:08 PM
16 Yr Old Helper (by Still Learning [NH]) Jul 17, 2019 4:00 PM
16 Yr Old Helper (by Robert J [CA]) Jul 17, 2019 4:05 PM
16 Yr Old Helper (by Steve [MA]) Jul 17, 2019 4:13 PM
16 Yr Old Helper (by Rich [PA]) Jul 17, 2019 5:13 PM
16 Yr Old Helper (by Still Learning [NH]) Jul 17, 2019 7:50 PM
16 Yr Old Helper (by David [NC]) Jul 18, 2019 7:28 AM
16 Yr Old Helper (by nhsailmaker [NH]) Jul 18, 2019 7:34 AM
16 Yr Old Helper (by MMIT [VA]) Jul 18, 2019 8:33 AM
16 Yr Old Helper (by MMIT [VA]) Jul 18, 2019 8:33 AM
16 Yr Old Helper (by Vee [OH]) Jul 18, 2019 8:55 AM
16 Yr Old Helper (by BRAD 20,000 [IN]) Jul 25, 2019 8:17 PM
16 Yr Old Helper (by Rich [PA]) Posted on: Jul 17, 2019 2:11 PM
Message:
My son and his buddies are 16 years old. On occasion, I have "hired" them to help with certain projects - (painting, light handyman type jobs). I try to teach them some basic skills (how to use a measuring tape, etc) and I have kept them away from the dangerous tools (tall ladders, circular and miter saws) for now. I have paid them each $10 per hour cash. None of the boys have exceeded $600 in a year and I have never taken any rental deductions based on their work. Recently, to increase my son's knowledge of the landlording business, I started to teach him the accounting and tax prep process. I also pay him $10 per hour for this work.
My son is turning 17 soon and is working at a CPA firm this summer for a couple days a week, mostly doing filing and odd jobs. He is getting a pay check and will receive a W2 at year end.
Based on the new Fed tax rules that allow nearly $12K per year to be untaxed, should I start paying him as an employee and tax the tax deduction as an expense?
--100.6.xxx.x |
16 Yr Old Helper (by Landlord ofthe Flies [TX]) Posted on: Jul 17, 2019 3:04 PM
Message:
Your son is working for a CPA. Why are you asking us? --108.69.xxx.xxx |
16 Yr Old Helper (by Busy [WI]) Posted on: Jul 17, 2019 3:08 PM
Message:
Ditto LLOTF! *grin* --172.58.xxx.xxx |
16 Yr Old Helper (by Still Learning [NH]) Posted on: Jul 17, 2019 4:00 PM
Message:
I used my son like an intern when he was in college for accounting. During summer I had him take over accounts receivable/payable, rent deposits and recording on quicken, utility billing, created better invoicing and maintenance logs for me, bank recs on Quicken and paid him under the $600 threshold. He was working part time and then full time for our accountant. He put our LLC on his resume. I fielded the phone call while on the streets of Belfast Ireland on family vacation confirming the work he did for the LLC but did not hide we were related. It gave him additional experience to put on his resume and to talk about at job interviews. I don’t know which is better employed vs 1099 but anything that builds a resume is good. If your child is looking at college for business, it could also be listed on college applications. --12.226.xxx.xxx |
16 Yr Old Helper (by Robert J [CA]) Posted on: Jul 17, 2019 4:05 PM
Message:
My uncle was a top engineer working for NASA. He was an independent contractor with over 100 people under him. So he put his entire family on payroll. Made the deductions for taxes and started a retirement account for them. He was also able to write off those expenses.
Now his kids are retiring. They had forgotten about those "put aside" retirement accounts. A little nothing turned into a couple a grand a month in benefits. --47.156.xx.xx |
16 Yr Old Helper (by Steve [MA]) Posted on: Jul 17, 2019 4:13 PM
Message:
This the time for him to open a ROTH IRA & make the maximum allowed contribution. Due to his age & yearly income he should be able to have a nice little nest egg by the time he either wants to retire. --96.237.xx.xx |
16 Yr Old Helper (by Rich [PA]) Posted on: Jul 17, 2019 5:13 PM
Message:
This is meant to be less of an accounting question and more of a question for landlords who have paid kids to work in the business. I am not asking if I can pay them as employees (W2) or as a contractor (1099).
From a landlord's perspective, is it worth my time and effort to do this vs just paying cash, especially considering the limited hours being worked. Similar to paying the neighborhood kid $20 per week cash to cut your lawn.
--100.6.xxx.x |
16 Yr Old Helper (by Still Learning [NH]) Posted on: Jul 17, 2019 7:50 PM
Message:
Yes, I pay by check when I use kids to help me clean apartments. No cash. The LLC uses it as a maintenance expense. --107.77.xxx.xxx |
16 Yr Old Helper (by David [NC]) Posted on: Jul 18, 2019 7:28 AM
Message:
If your income is in the higher tax brackets, then yes it makes sense to "pay" your kid 12K a year so that the tax burden is shifted from you to your kid. this allows you to pay for his college education, or roth IRA. so yes from a tax planning situation it is a smart move. You got to ask yourself what is the next step? If you have enough money in your 529 Plan for college then put as much money in the Roth IRA for him. Any of the big firms have 529 and Roth IRAs. Fidelity Investments is one name for you to research.
Rough numbers for you: If you are in the 32% percent federal bracket you are paying 4K in taxes. By paying him 12K, he'll be in the 12% bracket and you just saved $2500 in taxes. --65.188.xxx.xxx |
16 Yr Old Helper (by nhsailmaker [NH]) Posted on: Jul 18, 2019 7:34 AM
Message:
LAWYERS -...UGH !!!!!!!
Use to be able to have neighborhood kid cut lawn - NO Longer
Cant let 16 yr old grandson borrow car anymore
Lawyer put everything in a trust and the result is Lawyer-mania --24.62.xxx.xxx |
16 Yr Old Helper (by MMIT [VA]) Posted on: Jul 18, 2019 8:33 AM
Message:
Pay him on a 1099 and use the 1099 money to max out a Roth IRA for him.
Any money over the Roth limit goes into a solo 401. Then immediately roll the solo 401 money over to a Roth.
Do this every year until he graduates from college and this money will grow tax free for his lifetime. This could be worth millions of dollars when he retires.
The Roth IRA is the next best thing to investing in real estate.
--70.188.xx.xx |
16 Yr Old Helper (by MMIT [VA]) Posted on: Jul 18, 2019 8:33 AM
Message:
Pay him on a 1099 and use the 1099 money to max out a Roth IRA for him.
Any money over the Roth limit goes into a solo 401. Then immediately roll the solo 401 money over to a Roth.
Do this every year until he graduates from college and this money will grow tax free for his lifetime. This could be worth millions of dollars when he retires.
The Roth IRA is the next best thing to investing in real estate.
--70.188.xx.xx |
16 Yr Old Helper (by Vee [OH]) Posted on: Jul 18, 2019 8:55 AM
Message:
I like the idea, when my girls were bubbling up young tennagers they would brag that they got all the water lines in a house in 2 days and after I got the wiring in we were going tubing on the lake - friends would ask if they could go, the girls said why don't you come help and we can get on the water earlier? Go ask your parents to call my dad... --76.188.xxx.xx |
16 Yr Old Helper (by BRAD 20,000 [IN]) Posted on: Jul 25, 2019 8:17 PM
Message:
Rich,
Me? Pay him $20 per hour into his college fund savings account. No need for Roths while he’s below the taxable limit and it goes to tuition anyway.
The other teens? Sorry. Too much liability, workman’s comp...if your ins found out they might cancel you.
I’m guessing your son is covered by your ins but not on the others.
Think your best friends (the parents) won’t sue? In a heartbeat! if their kid steps on a nail or gets poked in the eye by some brush.
My first farmer boss always said “When you have a boy you have half a boy. Two boys is no boy. Three boys is mischief and danger.” When I think of the idiotic stuff I did, even as a good teen, I cringe. Then I wonder if the boss ever found out...and amazed we didn’t kill ourselves.
Of course we were on our best behavior when the boss was around.
Help them get a job at MacD’s, baling hay, detasselling, bagging groceries...to learn how to work.
Your wonderful desire to help them learn could cost you dearly.
Manage safely!
BRAD --73.102.xxx.xxx |
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