Do you operate your business as a sole proprietor?
If you do, you know that Uncle Sam helps himself to a big chunk of your profits in the form of self-employment taxes.
To be specific, he’s taking a full 14.13-percent! (That’s 92.35% of the published 15.3 percent because there’s a reduction on Schedule SE.)
But hang on a second. There is something you can do to dramatically reduce your self-employment tax bill… Rent an office in your home or building from your spouse!
Want to find out more about how this totally legal strategy can save you a bundle? Read my new article titled Tax Tips: Reduce Self-Employment Taxes by Renting from Your Spouse!
Three ways our fact-filled article can help you:
- We’ll explain how this money-saving strategy works. Here it is in a nutshell… You give your home or office building to your spouse who then rents office space back to you. Then, you pay your spouse rent every month which moves money off Schedule C and onto Schedule E (which doesn’t give rise to self-employment taxes). You’ll get all the details when you read the full article.
- We’ll explain why your spouse plays such an important role. You can use this terrific rent-from-your-spouse strategy if you meet one of two ownership conditions. We’ll tell you what they are when you read the full article.
- You’ll get tips on how to make this strategy work. To keep things legal, you have to respect all the formalities of the lease contract you enter into with your spouse. What can you do to make sure you’re in complete compliance with the law? We’ll provide you with six tips that will keep you on the right side of the law when you read the full article.