Prince_Ahmed said:

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62strat said:

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Prince_Ahmed said:

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62strat said:

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My dad did something similar when I was in college. He worked for himself, and he 'paid' me as an employee of his, which then went straight to paying tuition. It was basically a deductible against his business I guess? And my income from him was 100% tuition, so no effect on me.

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An Aggie doesn't lie, cheat, or steal.

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Well my dad's not an Aggie, soo..

Aside from that, loopholes aren't lying, cheating or stealing. If he wants to pay me as an employee to do absolutely nothing, that's his choice, and is not illegal.

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So you aren't an Aggie, or you didn't benefit from this arrangement you are advertising? I'm sorry, I thought I saw an ag tag.

The "loophole" includes the idea that children do actual work, which is made pretty clear by both the Service and case law. IRS has disallowed those business deductions in cases where it comes up that actual work isn't being done by the child, or where the wages were not commensurate with the skills and services the child was providing the business. The Service does provide incentives for kids that actually do work in a family-owned business, with the caveat they are actually working and are compensated appropriately for that work.

You may have benefited from this arrangement legitimately, but I didn't interpret your post that way (especially with the added post that he paid you for doing absolutely nothing. Apologies if I was in error.

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You got us.. we're crooks.

I choose to deal with current "real" numbers when it comes to savings goals, not hopes. When calculating things like tax rates, social security, inflation numbers, etc., it's tends to be more favorable to use current estimates or even worse case scenarios rather than hoping something goes your way that hasn't been going your way for the last 25-30 years.

You keep hoping though.