How to Save Taxes by Hiring Junior

Gardner, Randy; Welch, Julie A.
October 2005
Journal of Financial Planning;Oct2005, Vol. 18 Issue 10, p32
Academic Journal
This article provides information on several U.S. cases related to the hiring of family members in a business, which, in turn, serve as pointers on how to take advantage of the strategy. In the Dumond case, a married couple was denied a business expense deduction for amounts paid to their minor children on the grounds that the father did not keep adequate records of the hours the children worked and did not otherwise substantiate the deduction and that he retained control of the money. On the other hand, adequate documentation and reasonable amounts have been the problems of other court cases, such as the Denman v. Commissioner, Eller v. Commissioner and Barrier v. Commissioner.


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