Paying your spouse in the business
Varies
Can You Write Off Paying Your Spouse in the Business?
Short answer: Yes for real work at a reasonable wage; it can also open the door to spousal retirement contributions and a medical reimbursement plan.
The wages are taxable to your spouse, so the savings come from benefits rather than income shifting.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
Paying your spouse in the business
Varies
General Business
Yes for real work at a reasonable wage; it can also open the door to spousal retirement contributions and a medical reimbursement plan.
Business justification
Yes for real work at a reasonable wage; it can also open the door to spousal retirement contributions and a medical reimbursement plan. The wages are taxable to your spouse, so the savings come from benefits rather than income shifting.
Category
- Business Write-Off Questions