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The strategic employment of family members offers significant tax advantages when implemented correctly, but widespread misinformation can lead to costly mistakes and potential audit issues.

• Pay family members based on work performed, not automatically the standard deduction amount
• Family Management Companies are problematic under scrutiny; consider legitimate alternatives like rental property employment
• Consider hiring spouses, parents, and siblings, not just children, to maximize tax benefits
• Maintain proper employment documentation including job descriptions, time logs and regular payroll systems
• Leverage family members' unique skills instead of limiting them to menial tasks
• Explore advanced strategies like education tax credits when hiring college-age children

Message me the word "workshop" with your email for free access to our detailed workshop on hiring family members. Visit prosperapcpa.com/apply to learn how our experts can help maximize your tax savings strategy.