Alexis Gallati, a tax expert and founder of Cerebral Tax Advisors, joins Dr. Dahle to explore fascinating tax strategies tailored for medical professionals. They discuss the benefits of hiring spouses and children for tax deductions and retirement planning. The conversation dives into the tax implications of hiring nannies, shedding light on allowable deductions and compliance. They also tackle cash management tips during low-income years, emphasizing effective contributions and investment fund strategies for optimal tax benefits.
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volunteer_activism ADVICE
Hiring Children vs. Spouse
Consider hiring your minor children instead of your spouse.
Children working for non-corporate businesses owned by their parents pay no payroll taxes and their earned income can fund a Roth IRA.
insights INSIGHT
Spouse Salary Deduction
Hiring your spouse provides a business deduction for their salary but increases personal taxable income.
This isn't a true deduction unless it's an S-corp where distributions replace salary, creating payroll tax savings.
volunteer_activism ADVICE
Legitimate Employment
Treat family employees like any other employee with contracts, W-2s, and defined roles.
This protects you from IRS scrutiny.
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Today we have another Friends of WCI episode. Tax guru, Alexis Gallati, joins Dr. Dahle to answer your questions about taxes. They start with a question about what the benefits of hiring your spouse and children might be. Then they answer a question about the tax implications of hiring a nanny. They debate what to do when you have a bunch of cash in your Vanguard Settlement fund and wrap up in the episode with a question about tax considerations in a low income earning year.
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