TaxTip about Hiring Family Members

Category: Business Strategies
Current Grade: A-
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Member Comments: 1

Posted on: 06/09/2008
Posted by: TReXGlobal
Blog Points: 490
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You should hire someone (like a family member) to do your work and write off the cost of labor, since you cannot deduct the cost of your own labor.

For Example: if you paint your rental property or install a lock using your own labor instead of hiring a painter or a locksmith, you cannot deduct any expenses for labor.

SO YOU SHOULD HIRE A FAMILY MEMBER!!!

If you hire a non-owner (like your child or possibly your spouse), the costs are deductible against your income because they are considered to be business expenses.

There's no catch and it's A-OK with the IRS. You will have more control over lowering your expenses while still keeping the ability to write them off.

To learn more about how to take control of your real estate investments, check out RealTaxTips at TReXGlobal.com.

Niman Singh

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Current Grade: A-
Category: Business Strategies

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TaxTip about Hiring Family Members

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