Questions on LLC

[MW Agent]

Yeah I waited until after age 40 to do the S corp. I'm well beyond trying to impress anyone. Just got tired of the taxes. I beg my CPA every year to get creative and find everything possible I can pay for through the corp so I can pay fewer taxes. He's conservative so I'm sure there are some things I don't pay for that others do.

Do you have Pre college kids?

 

[cgreene]

You can do a single person llc but file it as an s corp for tax purposes.

 

[Thad.Sipple]

Do you have Pre college kids?

good question, you can do a college fund and then buy a house out of it for the kids of course for there college of course. hehe

 

[MW Agent]

good question, you can do a college fund and then buy a house out of it for the kids of course for there college of course. hehe

Pay them to do some work for you. They can earn up to the standard deduction tax free. They could even get another $5,500 plugged into an IRA income tax free. The money gets out of your tax bracket and to the kids income tax free. The IRA money can be used penalty free for college. Also could fund a Roth. As S-Corp, you have the FICA on the kids. Schedule C avoids even the FICA. This has been IRS challenged on kids as young as seven and the taxpayer won in court. Wages and tasks must be reasonable.

 

[Thad.Sipple]

Pay them to do some work for you. They can earn up to the standard deduction tax free. They could even get another $5,500 plugged into an IRA income tax free. The money gets out of your tax bracket and to the kids income tax free. The IRA money can be used penalty free for college. Also could fund a Roth. As S-Corp, you have the FICA on the kids. Schedule C avoids even the FICA. This has been IRS challenged on kids as young as seven and the taxpayer won in court. Wages and tasks must be reasonable.

Your pretty smart.......

 

[MW Agent]

Your pretty smart.......

I'm an enrolled agent who knows our industry well and I've been carving out a niche working with agents/advisors.

 

[sman]

Do you have Pre college kids?

Unfortunately not (or should I say fortunately not). I started young. I'm 45 and have a 25 and 20 year old. 25 year old is finished with college. 20 year old has one semester left after this current semester (she started college when she was 17).

Trust me, I've told my CPA to tell me every way I can reduce my tax burden. Short of reducing my income I can't do anything else (at least not in my CPA's eyes). I'm funding my retirement plan. I pay myself all the legitimate allowances I can. It is what it is.

 

[pfg1]

Unfortunately not (or should I say fortunately not). I started young. I'm 45 and have a 25 and 20 year old. 25 year old is finished with college. 20 year old has one semester left after this current semester (she started college when she was 17).

Trust me, I've told my CPA to tell me every way I can reduce my tax burden. Short of reducing my income I can't do anything else (at least not in my CPA's eyes). I'm funding my retirement plan. I pay myself all the legitimate allowances I can. It is what it is.

I know it sucks not being able to do anything further, but that ain't a bad position to be in. Truthfully, I can't wait to get there.

 

[sman]

I know it sucks not being able to do anything further, but that ain't a bad position to be in. Truthfully, I can't wait to get there.

I agree. I've been on the other end of it, scraping to get by. And this side is nicer. But our tax code SUCKS! And I've always felt that way. Even when I was scraping to get by.