How To Pay Your Kids $12k Per Year Tax Free
Episode description
Did you know when you own your own business you can pay each child up to $12,000 per year tax free to them and a write off for you which saves you taxes?!
Then you can take and invest that $12k per year and in an investment account (let’s say the stock market) yielding on average 7%, and let’s say you started from your child’s birth. By the time your child is 18, you will have put $12k per year into their investment account, $216,000 total, which while earning compounding interest of 7% per year results in the investment account being $407,988.
I don’t know about you but I could have used $407k when I was 18.
You can also use the $ to invest in rental real estate. Gotta listen to the episode for tips!
All of this is made possible by a really good CPA. If you are a 6 or 7 figure entrepreneur that owns their own business, I’d encourage you to reach out to Greg O’Brien at GO CPAs. Link is below.
https://www.gotaxplanning.com/
Timestamps:
- [1:18] How you can pay your child $12k every year.
- [4:49] You can do this for every child.
- [8:43] Buying your child an investment property.
--
Let's Connect!
To get more info and updates on the podcast
@gettingmagnetic
Follow our personal Instagram accounts
@sandyclaus7
@wellnesswithwade
Check out our website for all things Getting Magnetic
https://www.sandyandwade.com/