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We have our own business (S Corp.). we want to lower our income

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we take out of the...
We have our own business (S Corp.). we want to lower our income we take out of the bus. for us. My daughter is in college. Would it be better to put her on the payroll and have her pay for her college and expenses or can we pay her college out of the bus. acc?
Submitted: 8 years ago.Category: Tax
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Answered in 10 minutes by:
5/3/2009
Tax Professional: Merlo, Accountant replied 8 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello McIver,

You cannot pay tuition fees for your daughter out of your business account, unless she is also classified as an employee of the business.

As an employee, you could then offer her a tuition reimbursement program. The limit you may offer per year to any employee is $5,250. Any additional expenses she may have could then be paid out of the salary you pay to her as an employee.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.




Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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