I thought I’d post this here where people aren’t as extreme with tax deductions as other forums tend to be. My wife and I have five properties and my two oldest kids mow the lawns for the properties and they get paid for it. We have so far just paid them and taken the expense off our gross income for the properties.
I was considering contributing the same amount they get paid into a Roth IRA to start compounding early... Also considering matching their contributions as well up to their earned income limit.
I’ve also brought kids along to help me with other projects such as installing new tension springs in a garage door. Redoing some electric work and pouring some concrete countertops.
Has anyone done something like this? Hiring their kids to do work and the.n contributing to a Roth IRA? I have read that they need to receive a W2 from you, but then others say you don’t need to do that because the penalty is based on taxes due and if they are not paid a lot then there are no taxes due.
Looking for any insight here from you who have done this.
I was considering contributing the same amount they get paid into a Roth IRA to start compounding early... Also considering matching their contributions as well up to their earned income limit.
I’ve also brought kids along to help me with other projects such as installing new tension springs in a garage door. Redoing some electric work and pouring some concrete countertops.
Has anyone done something like this? Hiring their kids to do work and the.n contributing to a Roth IRA? I have read that they need to receive a W2 from you, but then others say you don’t need to do that because the penalty is based on taxes due and if they are not paid a lot then there are no taxes due.
Looking for any insight here from you who have done this.