Are Irs Form 13844 Spouse 2024

Hi Mark Kohler here with the tax and legal tip. Today, I want to talk about whether or not you should put your spouse on payroll if you are a small business owner. This is a question I receive quite frequently, so let's dive into it and explore some options together. First, let's put this discussion into context. When we talk about short term vs. long term ordinary income and passive income, think of it like your LLC and a rental property. On one side, you have passive cash flow from the rental property, and on the other side, you have the small business S corporation where you, as the business owner, need to put yourself on payroll. Now, the question arises - should you put your spouse on payroll as well? Before we answer that question, let me provide you with some basic information. I have other videos on YouTube and a tax and legal library on my website where you can find more in-depth information on topics such as hiring your kids or building a team. You can access these videos with a small investment, which grants you lifetime access. Now, let's get back to the question at hand. If your spouse is running the real estate side of your business, they do not necessarily have to take a salary from that. When you have rental properties, you can simply take passive income whenever you want. So, putting someone on payroll is not necessary for managing your passive income. On the other hand, if your spouse is primarily running the S corporation, which is common for entrepreneurs and business owners, they would be the 100% owner. You do not need to make your spouse a part owner to reap the tax benefits. Instead, I suggest making your spouse a board of director...