Tax Tip for Sole Proprietors
If you have relatives who are seeking employment, such as your spouse or children, this is a creative solution to minimize your taxes.
Barring your new hires perform their required duties, you can pay them a reasonable rate of up to $11,000, essentially shifting your income to theirs.
One of the advantages this solution brings is that they will pay zero dollars in taxes due to the tax credit you have now accumulated.
If your marginal tax rate is 50%, this would reflect as a $5500 savings as a family.