by Marc Goodin As Shark Tanks, Kevin Oleary always says it is not only how much you make but how much you get to keep after taxes. Here are 3 great tax strategies to legally transfer money "tax free" from your company to you and your family. I am not a CPA so you must consult with your CPA to further understand the details and IRS requirements of these tax strategies. Often tax options are also related to they type of business entity or corporation you have.
#1 Rent your home to your business for up to 14 days a year. The tax laws allow you to rent your home for 14 days a year and not pay taxes on the income. So if you rent your house for a $1,000 a day that would $14,000 paid to you that you would not pay a penny of tax on. And just as exciting your company gets to write it off as an expense to save further taxes.
Good record-keeping is a must. You need to send an invoice from you to your company. The rental rate needs to be at market rate so you need to contact 2 or 3 local venues and see what they charge for a day's rental. Typically $500 minimum and often much more.
There are many reasonable ways you can use the 14 days from staff meetings, mini-retreats, and my favorite, making social marketing videos.
CONSULT WITH A CPA
Everyone’s financial situation is different. Only a professional CPA can help you identify the right course of action for your business and your family.
#2 Pay your kids ages 7 to 18 up to $12,000 a year to work for you. Your kids will not even have to pay income taxes and again the wages will be an expense to your business for further savings. Imagine if your kids made $12,000 a year and half went into their IRA account or college fund. It could be life-changing. And just as important is the life education they will get by working.
My kids learned more by working in our self-storage than they did in college!
It does have to be legitimate work. Here are 20 items that could be part of their work:
1. Work in the office renting units and other daily tasks (if they are old enough)
2. Voice talent for radio/youtube advertising
3. Create or distribute marketing materials and
4. Facility Repairs or cleaning the facility.
6. Assist with social media marketing, including
posting on blogs, Twitter, Facebook, Instagram, etc.
7. Competitive research on the internet
8. Solicit and compile customer testimonials
9. Landscaping and yard work including mowing lawn,
weeding or snow shoveling
10. Wash uniforms and towels
11. Assist with office work, pick up business mail, shop for supplies
12. Provide bookkeeping and basic accounting assistance
13. Prepare spreadsheets, review invoices and bank statements, etc.
14. Answering the phone for the business
15. Develop/review and monitor business plan for
practice (for older children in management training)
16. Provide services during legitimate business dinners
or parties (e.g. food prep, setup, decorations.
17. Perform internet research for business-specific
18. Send out birthday cards to clients/customers
19. Prepare and send out newsletters
to customers or prospects
20. Actor or model for advertising.
CONSULT WITH A CPA
Everyone’s financial situation is di erent. Only a professional CPA can help you identify the right course of action for your business and your family.
#3 Instead of depreciating your self-storage over the traditional 39 years IRS standard you have a professional prepare a component depreciation schedule so you can significantly depreciate your facility in the early years for more cash flow.
CONSULT WITH A CPA
Only a professional CPA can help you identify the right course of action for your business and your family.
If you want to have a 15-minute call to learn more about how Storage Authority can help you make larger oversized profits and how we help you find land and get your facility built please send me an email or call me – no appointment needed:
marc@StorageAuthorityFranchise.com or 860-830-6764
Get more information on Storage Authority Franchise at www.storageauthorityfranchise.com/opportunity3
Marc Goodin is the President of Storage Authority Franchising. www.StorageAuthorityFranchise.com He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 25 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His best selling self storage books are available on Amazon.