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1. Obtain IRS model form #5305 (5305-simple) by calling the IRS at (800) 829-1040.
2. Fill out a copy of this form.
3. Do not send back to the IRS; simply keep on file in case you need a record of it.
Hire Your Dependent Children Age 7 to 17
If you are a sole proprietor with children or […]

• An employee, that is, spouse, can contribute a percentage of his or her salary, or you can contribute a percentage of your net income up to $7,000 per year (in 2002). In addition, you as the sole proprietor can match your own contribution of up to 3 percent of your net income. For example, […]

Another way to shift income to family members is by adopting a simple pension plan. Without question, setting up a 401(k), or some other type of profit-sharing plan, is one of the best tax-saving strategies available to a home-based business owner.
Set up in 1997 by Congress in an effort to eliminate some of the cumbersome […]

The pollution today can be really harmful to our health. The free radicals are the main cause of several diseases. That’s why we need to go back to nature to keep us healthy in safe way. This is can also be the main cause to beauty. Free radicals may affect our skin to look […]

Another wonderful income-shifting benefit you can offer family members that can help reduce your taxes is “supper money” funds. Such funds are what you agree to pay an employee when overtime work is required.
Under this allowance, you get a deduction and the employee, that is, your spouse, gets that money tax-free.7
First of all, you should […]

The plan works the same whether you are married or single with
children.
• Step 1: Hire your spouse (or a child) part-time. Keep in mind that this will only work if you are a sole proprietorship, partnership, LLC, or “C” corporation, not an “S” corporation.
• Step 2: Draw up formal paperwork for both a medical plan […]

There are many people like to modify their beloved car. As we know that car is an important valuable for those who live in town. Therefore to have a trendy car becomes one of their primary needs recently. No matter how much money paid out for an accessory, as long as they feel excited and […]

A Medical Reimbursement Plan is a written plan whereby the employer (you) hires an employee (spouse) and reimburses that employee and any of his or her family members (your children), for medical expenses not covered by medical insurance.
Some of the healthcare needs that you and your family might have that
are not covered by a standard […]

What if you aren’t married? You do have some options for taking advantage of this medical deduction:
1. You can hire your kids, if you have children, and pay for their medical premiums, thus qualifying you to take these as a business expense at 100 percent.
2. You can incorporate as a regular non-Sub “S” corporation (either […]

Once you have legally hired your spouse, take advantage of their employment with a plan to pay his or her medical insurance premiums and deductibles and your children’s medical expenses. That way you can deduct 100 percent of your family’s medical insurance expenses.
Here’s how it works:
Suppose you are a sole proprietor paying $400 a month […]