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A comment on Trump’s Taxes Show Chronic Losses and Years of Income Tax Avoidance. Parent comment

Re:Trump’s Taxes Show Chronic Losses and Years of Income Tax... by koheripbal on Monday September 28, 2020 @10:26AM (#24616922)
Again, a lot of these things are pretty common in business.

My Dad has a business, and pays me a consultancy fee. I pay consultancy fees to my wife.

None of this is unusual for a family business.

[ Parent | on HN ]
Re:Trump’s Taxes Show Chronic Losses and Years of Income Tax... by implements on Monday September 28, 2020 @12:32PM (#24618424)
Do the regulations require that such fees must be ‘honest’ ie be for actual work and proportional to the market value of that work?

Are the fees declared to the IRS and all relevant taxes paid?

No need to answer (it’s your private business), but just because petty abuses are common and rarely caught doesn’t mean they’re legitimate business practices.

[ Parent | on HN ]
Re:Trump’s Taxes Show Chronic Losses and Years of Income Tax... by dathanb82 on Monday September 28, 2020 @12:09PM (#24618175)
It is unusual to pay your children as regular employees and also pay them as consultants, tho.
[ Parent | on HN ]
Re:Trump’s Taxes Show Chronic Losses and Years of Income Tax... by fjdjsmsm on Monday September 28, 2020 @11:33AM (#24617719)
If they are employees, and you are doing that, it is actually illegal.

You are either a consultant, or an employee.

[ Parent | on HN ]
Re:Trump’s Taxes Show Chronic Losses and Years of Income Tax... by digitaltrees on Tuesday September 29, 2020 @04:36PM (#24632649)
You can’t do that while also being an employee.
[ Parent | on HN ]