When Your Child is the Next Big Thing Gumbiner Savett Inc. manager, Lori Shrout recently had an article published in CPA Magazine regarding children and entertainment earnings. Living in Los Angeles, many families face this situation and can plan wisely for their little stars. Lori offers some great tips for you: Many parents hope for [...]
Giving away assets during your lifetime with the goal of reducing your taxable estate can be an important planning strategy. But with recent increases in gift and estate tax exemptions, many are feeling less pressure to make these gifts. The exemption amount is now “permanent” and set to increase with inflation instead of requiring Congress to approve increases. For 2015, that exemption amount is $5,430,000.
If your child has been socking away those gift checks and trading stocks along with the E-Trade baby, you could have some reporting to do. Special rules apply to anyone who can be claimed as a dependent on another return. These rules apply regardless of whether you actually claim your child as a dependent; the [...]
If you own your own business, consider the advantages of hiring your own child. This can be a great way to reduce the overall family tax bill by shifting income to children. If your child is doing a valid job and the pay is reasonable for the work performed, the business can claim a normal [...]