1099 vs. W-2

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MoonUnitZappa

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My previous job was W-2 without benefits. Current job is 1099. My accountant told me yesterday that I will end up paying more than 50% in taxes with 1099. What can I do to decrease my tax burden? Thank you.
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MoonUnitZappa said:
My previous job was W-2 without benefits. Current job is 1099. My accountant told me yesterday that I will end up paying more than 50% in taxes with 1099. What can I do to decrease my tax burden? Thank you.
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Get a new accountant as advised above. Your accountant is clueless. I pay way more taxes now as a W2 than as a 1099. You need to likely form an LLC.
Why would you even take a W2 job without any benefits? That’s the only benefit of being an employee.
 
chocomorsel said:
Get a new accountant as advised above. Your accountant is clueless. I pay way more taxes now as a W2 than as a 1099. You need to likely form an LLC.
Why would you even take a W2 job without any benefits? That’s the only benefit of being an employee.
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Unfortunately, W2 without benefits is what a candidate without connections can get in SoCal. Apart from writing off dental insurance, health insurance, malpractice insurance, gas money, car depreciation, phone expenses, and maximizing contribution into retirement accounts, what can an Anesthesiologist do for tax purposes?
 
NICMAN said:
I would say the first step is to get an experienced tax accountant who understands small businesses and independent contractors. Then I would listen to them. Welcome to the world of payroll taxes.
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My accountant told me I will end up paying higher social securing taxes with 1099 compared to W-2.
 
MoonUnitZappa said:
My previous job was W-2 without benefits. Current job is 1099. My accountant told me yesterday that I will end up paying more than 50% in taxes with 1099. What can I do to decrease my tax burden? Thank you.
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Okay. You need a new CPA who actually knows the tax code. Let's discuss a few things:

1. Deduct the car (80%-90%)
2. Home office
3. Malpractice. Health Insurance. Cell Phone.
4. Computers. Printers. Laptops. Ipads. Office Furniture. Toner ink.
5. Defined Benefit Plan
6. 401K + Profit Sharing Plan
7. Cash Balance Plan
8. CPA expenses. Software.
9. Licenses. Meetings. Medical Organizations. MOCA. Journals. Books and CME.

No way you pay 50% taxes with all those deductions unless your gross income was over $900K.
 
MoonUnitZappa said:
Unfortunately, W2 without benefits is what a candidate without connections can get in SoCal. Apart from writing off dental insurance, health insurance, malpractice insurance, gas money, car depreciation, phone expenses, and maximizing contribution into retirement accounts, what can an Anesthesiologist do for tax purposes?
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This is not called W2 without benefits. It is basically 1099. Your group hires CPA to do all deductions and tax withdrawing. Make your life easier by just issuing a final W2.
 
BLADEMDA said:
Okay. You need a new CPA who actually knows the tax code. Let's discuss a few things:

1. Deduct the car (80%-90%)
2. Home office
3. Malpractice. Health Insurance. Cell Phone.
4. Computers. Printers. Laptops. Ipads. Office Furniture. Toner ink.
5. Defined Benefit Plan
6. 401K + Profit Sharing Plan
7. Cash Balance Plan
8. CPA expenses. Software.
9. Licenses. Meetings. Medical Organizations. MOCA. Journals. Books and CME.

No way you pay 50% taxes with all those deductions unless your gross income was over $900K.
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Business meal in restaurants 100% deductible (up to a daily limit?)

DBP and cash balance plan not the same thing?
 
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MoonUnitZappa said:
Unfortunately, W2 without benefits is what a candidate without connections can get in SoCal. Apart from writing off dental insurance, health insurance, malpractice insurance, gas money, car depreciation, phone expenses, and maximizing contribution into retirement accounts, what can an Anesthesiologist do for tax purposes?
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Get the hell out of SoCal! Seriously. Travel there to visit. This country is huge. SoCal is not the only nice place to live. Live a little.
 
MoonUnitZappa said:
My accountant told me I will end up paying higher social securing taxes with 1099 compared to W-2.
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Yes you do. But the other stuff cancels all that out and then some.
Please get a new accountant and really, really consider a new location as well. Come on over here to TX, cuz I can guarantee you will find lots of people here from California who’ve skyrocketed our real estate markets.
 
What is the expected tax rate range with 1099? When are the write offs typically done: during quarterly taxes or at the end of the year when annual taxes are filed? Thank you
 
MoonUnitZappa said:
What is the expected tax rate range with 1099? When are the write offs typically done: during quarterly taxes or at the end of the year when annual taxes are filed? Thank you
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Generally when I made 450k 1099 (did it for 9-10 years)

I paid a TOTAL of around 75k IN federal TAXES. (Federal/social security/Medicare)

So roughly 15%. Some years I paid 70k. Some years 80k.

As a W2 with federal taxes plus Medicare/social security/fica. I paid roughly 22-25% effective tax rate.

This is EFFECTIVE TAX RATE. Which is what we all should focus on.

Some people are more aggressive and pay only 10% effective tax rate as 1099. Buying range rovers as section 179 deductions etc.

If you are single person or married to spouse with good health insurance. 1099 is the way to go.
 
aneftp said:
Generally when I made 450k 1099 (did it for 9-10 years)

I paid a TOTAL of around 75k IN federal TAXES. (Federal/social security/Medicare)

So roughly 15%. Some years I paid 70k. Some years 80k.

As a W2 with federal taxes plus Medicare/social security/fica. I paid roughly 22-25% effective tax rate.

This is EFFECTIVE TAX RATE. Which is what we all should focus on.

Some people are more aggressive and pay only 10% effective tax rate as 1099. Buying range rovers as section 179 deductions etc.

If you are single person or married to spouse with good health insurance. 1099 is the way to go.
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For a single healthy person, what would you consider to be the breakeven income for which 1099 would start to be superior due to tax savings? I've heard 300-350k thrown around just as a rule of thumb.
 
aneftp said:
Generally when I made 450k 1099 (did it for 9-10 years)

I paid a TOTAL of around 75k IN federal TAXES. (Federal/social security/Medicare)

So roughly 15%. Some years I paid 70k. Some years 80k.

As a W2 with federal taxes plus Medicare/social security/fica. I paid roughly 22-25% effective tax rate.

This is EFFECTIVE TAX RATE. Which is what we all should focus on.

Some people are more aggressive and pay only 10% effective tax rate as 1099. Buying range rovers as section 179 deductions etc.

If you are single person or married to spouse with good health insurance. 1099 is the way to go.
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How did you get away with 15% federal tax and not 35%???
 
GoBeers said:
How did you get away with 15% federal tax and not 35%???
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CME fancy trips (travel cme)
6000 pound suv deduction
Solo 401k (put spouse on payroll) putting away 70k plus
Expense almost everything
Dinners
Electronics (that’s hdmi cable) on the $6000 tv means it’s a computer monitor. Cough cough legit computer monitor I use to search for jobs

But it’s not all fun and games

Health insurance the post Obamacare years ran 20k easily in premiums
Malpractice (occurrence ) for 250/750k was 20k

All those deductions add up.

As a w2 who took a state job as a lowly 300k a few years ago. I paid like 60k in federal taxes plus fica and Medicare. (So around 68k roughly) (that’s 22% effective tax rate) as w2.

But my healthcare was free at state job. My malpractice was paid and they gave me 25k retirement.

So it’s all fuzzy math w2 vs 1099.

Now w2 with state job is a lot different than w2 with an AMC that gives crappy benefits. So the math is complicated.
 
aneftp said:
Generally when I made 450k 1099 (did it for 9-10 years)

I paid a TOTAL of around 75k IN federal TAXES. (Federal/social security/Medicare)

So roughly 15%. Some years I paid 70k. Some years 80k.

As a W2 with federal taxes plus Medicare/social security/fica. I paid roughly 22-25% effective tax rate.

This is EFFECTIVE TAX RATE. Which is what we all should focus on.

Some people are more aggressive and pay only 10% effective tax rate as 1099. Buying range rovers as section 179 deductions etc.

If you are single person or married to spouse with good health insurance. 1099 is the way to go.
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Completely agree as mine is around the same.

1099 gives you lots of tax flexibility as a small business owner.

If you are single, no house, no family, cheap car, then you don't have much to take advantage of with 1099
 
aneftp said:
CME fancy trips (travel cme)
6000 pound suv deduction
Solo 401k (put spouse on payroll) putting away 70k plus
Expense almost everything
Dinners
Electronics (that’s hdmi cable) on the $6000 tv means it’s a computer monitor. Cough cough legit computer monitor I use to search for jobs

But it’s not all fun and games

Health insurance the post Obamacare years ran 20k easily in premiums
Malpractice (occurrence ) for 250/750k was 20k

All those deductions add up.

As a w2 who took a state job as a lowly 300k a few years ago. I paid like 60k in federal taxes plus fica and Medicare. (So around 68k roughly) (that’s 22% effective tax rate) as w2.

But my healthcare was free at state job. My malpractice was paid and they gave me 25k retirement.

So it’s all fuzzy math w2 vs 1099.

Now w2 with state job is a lot different than w2 with an AMC that gives crappy benefits. So the math is complicated.
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Can you explain the 401k for spouse? Payroll you actually had her as an employee and provided salary?
 
aneftp said:
CME fancy trips (travel cme)
6000 pound suv deduction
Solo 401k (put spouse on payroll) putting away 70k plus
Expense almost everything
Dinners
Electronics (that’s hdmi cable) on the $6000 tv means it’s a computer monitor. Cough cough legit computer monitor I use to search for jobs

But it’s not all fun and games

Health insurance the post Obamacare years ran 20k easily in premiums
Malpractice (occurrence ) for 250/750k was 20k

All those deductions add up.

As a w2 who took a state job as a lowly 300k a few years ago. I paid like 60k in federal taxes plus fica and Medicare. (So around 68k roughly) (that’s 22% effective tax rate) as w2.

But my healthcare was free at state job. My malpractice was paid and they gave me 25k retirement.

So it’s all fuzzy math w2 vs 1099.

Now w2 with state job is a lot different than w2 with an AMC that gives crappy benefits. So the math is complicated.
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Remember too that Biden is in the process of hiring 87 thousand IRS agents. The fed govt needs dough like anyone. They know how much taxes you are supposed to be paying and if you are not paying that number they will come after you. They are comin after folks Especially high earning 1099 folks. You didnt hear it from me.
 
OptionOffense said:
Remember too that Biden is in the process of hiring 87 thousand IRS agents. The fed govt needs dough like anyone. They know how much taxes you are supposed to be paying and if you are not paying that number they will come after you. They are comin after folks Especially high earning 1099 folks. You didnt hear it from me.
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I have ever single receipt saved the last 15-20 years. Everything is legit.

If we meet for dinner. Any discussion about anesthesia job is a legit dinner expense (1/2 off meals deduction). Unless u buying for the entire table than than you deduct the entire diner.

So not sure what there is to audit

Those who get audited are the ones claiming almost 100% in deductions. Dentist in particular are notorious are close to 100% deductions. Their office, lease, staff.

Me paying 15% is actually good.

I got a pain friend who pulled 1.2 million and paid 110k in total taxes. That’s less than 10% effective rate. They won’t go after him either.

They go after the nail salons owners who own 9-01 salons making 3 million and claiming 40k in income. Those the ones who are shady.
 
aneftp said:
I have ever single receipt saved the last 15-20 years. Everything is legit.

If we meet for dinner. Any discussion about anesthesia job is a legit dinner expense (1/2 off meals deduction). Unless u buying for the entire table than than you deduct the entire diner.

So not sure what there is to audit

Those who get audited are the ones claiming almost 100% in deductions. Dentist in particular are notorious are close to 100% deductions. Their office, lease, staff.

Me paying 15% is actually good.

I got a pain friend who pulled 1.2 million and paid 110k in total taxes. That’s less than 10% effective rate. They won’t go after him either.

They go after the nail salons owners who own 9-01 salons making 3 million and claiming 40k in income. Those the ones who are shady.
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I get it but how many dinners can you go to talking about anesthesia for it to make a significant difference? Honest talk! Moca Minute is 200 dollars. That wont make a dent. Maybe your contribution to SEP IRA is worth it. BUt so is your employer matching to maximize your 401K. Claim a home-office? You will be audited. How many laptops can you buy? I just dont have that many expenses that would justify a schedule C while opening up myself to an audit. In addition, the thorny rules defining who is an employee vs contractor. If you show up at the same hospital daily for 5 straight years doing the same job at the same hospital are you really a contractor? the govt looks at all that.
 
OptionOffense said:
Remember too that Biden is in the process of hiring 87 thousand IRS agents. The fed govt needs dough like anyone. They know how much taxes you are supposed to be paying and if you are not paying that number they will come after you. They are comin after folks Especially high earning 1099 folks. You didnt hear it from me.
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Those 87k more IRS agents will be on the govt payroll doing the work of 20k IRS agents.

Bottom line. They aren’t gonna to do much.

Have you every called the irs offices before? I have. For small business their hours were a ridiculous 6am-2pm eastern time. (Those were their former hours)

Who the f is awake at 6am to call? It’s cause those agents come in. Chill for a bit. Basically do little to no work for 3 hours.

Then it’s 9am already.

And yes. That’s what they really do. My SO used to run a van pool of guys who commuted in from lower Pa to DC to work. That’s literally what they did.

And u think those guys moving to “remote at work” is gonna to improve their efficiency?

Ain’t no one motivated to work at the govt. so hire more people and get 1/4 the workload. That’s what happens with those new irs agents.
 
GoBeers said:
Can you explain the 401k for spouse? Payroll you actually had her as an employee and provided salary?
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Solo 401k
Pay spouse 25k ish
Can put 25k ish into solo 401k (25% of earnings plus $20500)

Spouse gets credit for social security and Medicare earning years as well (if they stay at home)
 
aneftp said:
Those 87k more IRS agents will be on the govt payroll doing the work of 20k IRS agents.

Bottom line. They aren’t gonna to do much.

Have you every called the irs offices before? I have. For small business their hours were a ridiculous 6am-2pm eastern time. (Those were their former hours)

Who the f is awake at 6am to call? It’s cause those agents come in. Chill for a bit. Basically do little to no work for 3 hours.

Then it’s 9am already.

And yes. That’s what they really do. My SO used to run a van pool of guys who commuted in from lower Pa to DC to work. That’s literally what they did.

And u think those guys moving to “remote at work” is gonna to improve their efficiency?

Ain’t no one motivated to work at the govt. so hire more people and get 1/4 the workload. That’s what happens with those new irs agents.
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Understood.
I voted for Trump and will vote for him again. I am fully aware of the sloth they call government workers and their work output. They are the definition of the "swamp".
 
OptionOffense said:
I get it but how many dinners can you go to talking about anesthesia for it to make a significant difference? Honest talk! Moca Minute is 200 dollars. That wont make a dent. Maybe your contribution to SEP IRA is worth it. BUt so is your employer matching to maximize your 401K. Claim a home-office? You will be audited. How many laptops can you buy? I just dont have that many expenses that would justify a schedule C while opening up myself to an audit. In addition, the thorny rules defining who is an employee vs contractor. If you show up at the same hospital daily for 5 straight years doing the same job at the same hospital are you really a contractor? the govt looks at all that.
Click to expand...

A good CPA will keep you out of trouble and within the bounds of the law. There’s nothing illegal about claiming a home office deduction if your employment agreement states that you need to maintain a home office. From there, that allows one to deduct their auto expenses and other things.

But it can all add up. After retirement contributions, I usually deduct another $30-40k in expenses each year. And I’m fairly conservative, so that’s without the section 179 vehicle deduction, furniture for my home office, vacations, or fancy meals. The end result is about $2k more in my bank account each month, so yeah, it adds up.
 
thinkorswim said:
A good CPA will keep you out of trouble and within the bounds of the law. There’s nothing illegal about claiming a home office deduction if your employment agreement states that you need to maintain a home office. From there, that allows one to deduct their auto expenses and other things.

But it can all add up. After retirement contributions, I usually deduct another $30-40k in expenses each year. And I’m fairly conservative, so that’s without the section 179 vehicle deduction, furniture for my home office, vacations, or fancy meals. The end result is about $2k more in my bank account each month, so yeah, it adds up.
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The goal is to "fly under the radar". If your idea of that is claiming a home-office, "go for it".
 
More people are going to get audited in the next few years. However lazy you think the new (barely trained, inexperienced, dumb, whatever) agents are going to be, it is an absolute certainty on the order of death & taxes 🙂 that they will audit more of us. High earners like us are at the center of that reticle.

Whether your aggressive deductions are "legit" or not there are a number of them that are well understood to increase your audit risk.

Getting audited isn't fun or cheap even if you win in the end. If they find anything at all they'll expand the audit to the past decade or so.

And honestly, the kind of deductions you advocate here (eg paying family members sham salaries to do no work) are probably illegal no matter how much thou doth protest.
 
OptionOffense said:
The goal is to "fly under the radar". If your idea of that is claiming a home-office, "go for it".
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I think you’re confused about the home office deduction. No one is deducting their entire mortgage payment claiming that their primary residence is their home office. The most common is a standard deduction of 300 sqft at $5 per sqft, so only $1,500 total per year. Again, if your employment agreement states that you need to keep a home office, and you use a computer at home to look up patients, place orders, manage your schedule, or even work on your business expenses, then there’s absolutely nothing ethically or legally wrong about it.

pgg said:
And honestly, the kind of deductions you advocate here (eg paying family members sham salaries to do no work) are probably illegal no matter how much thou doth protest.
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I agree, this just seems plain dumb and illegal. I don’t know a single person who does this. A defined benefit plan will allow you to save more with significantly less risk.
 
pgg said:
More people are going to get audited in the next few years. However lazy you think the new (barely trained, inexperienced, dumb, whatever) agents are going to be, it is an absolute certainty on the order of death & taxes 🙂 that they will audit more of us. High earners like us are at the center of that reticle.

Whether your aggressive deductions are "legit" or not there are a number of them that are well understood to increase your audit risk.

Getting audited isn't fun or cheap even if you win in the end. If they find anything at all they'll expand the audit to the past decade or so.

And honestly, the kind of deductions you advocate here (eg paying family members sham salaries to do no work) are probably illegal no matter how much thou doth protest.
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Beauty of beating an audit is u get to report even less income in the following years after an audit! It’s true. Couple of my buddies beat audits. Legit expenses. And it a big F u to the irs as they report less income in the years to follow

“
Getting audited by the Internal Revenue Service—and losing—is devastating. You have to pay more in taxes, and, perhaps scared of a repeat defeat, you’re likely to report much more income in future years.

Once bitten, twice shy.

“But getting audited by the IRS and winning the fight with the taxman is a completely different experience, according to a study released this week by the IRS's National Taxpayer Advocate. Self-employed taxpayers who got audited and came out unscathed reported less income in future years, an average of 35% lower three years after the audit, the study says. Having learned where the edge is, they seem to skate closer to it.”

www.wsj.com

What Happens After You Beat the IRS in an Audit

Self-employed taxpayers who got audited and came out unscathed reported less income in future years, a new study says.
www.wsj.com www.wsj.com

All these corporate executives with access to private jets. Suppose to be for business. U really think when Steve Jobs flew on corporate jet from California to Tennessee for urgent liver transplant. That’s a personal trip. I am sure he used apple corporate jet for his personal medical problem. Uncle Sam ain’t auditing Apple for that deduction

Of course Apple if they ever got question for that deduction would argue successfully that Jobs as CEO is entitled to the use of the corporate jet and his health and well being is a matter of company business.
 
aneftp said:
Beauty of beating an audit is u get to report even less income in the following years after an audit! It’s true. Couple of my buddies beat audits. Legit expenses. And it a big F u to the irs as they report less income in the years to follow
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So you're saying they cheated on their taxes, got through an audit, and then cheated more the next year because they got away with it?
 
pgg said:
So you're saying they cheated on their taxes, got through an audit, and then cheated more the next year because they got away with it?
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How it is possible to cheat on your taxes and pass an audit?

The preconceived notion on this forum that we as physicians aren’t entitled to any tax deductions and anyone doing so is doing it illegally is absurd.
 
thinkorswim said:
How it is possible to cheat on your taxes and pass an audit?

The preconceived notion on this forum that we as physicians aren’t entitled to any tax deductions and anyone doing so is doing it illegally is absurd.
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No

aneftp is "aggressive"

He freely and frequently posts about his colleagues / acquaintances committing tax fraud.

Nothing wrong with a home office deduction if you are careful about it. An anesthesiologist who employs a spouse to knock away another $58K in a 401k is committing a crime, full stop. Seriously - there's nothing legit there. Deductions to bring the tax bill for $1.2M in wages down to a $100K tax bill aren't legit. Come on.

Read his posts. They're on this page in this thread. Let's not all just nod along and pretend it's a good idea.

They've been getting away with it, so far. 87,000 new IRS employees will increase their risk of audit. I don't see how this is really that controversial.
 
pgg said:
So you're saying they cheated on their taxes, got through an audit, and then cheated more the next year because they got away with it?
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They cheat anything. All legit expenses. They beat the audit. Once you beat an audit it’s like a big f u to the govt. they are free to deduct even more and claim less taxable income for years to come.
 
I have an S-corp and am 1099. the problem with expenses is you still have to spend money though. It's an easy call when it comes to cars , food, office supplies though. ultimately the best part of it is taking advantage of the dividend component. Although the age old question is "what is reasonable salary" and I hear vastly different figures in pain management. With that being said, you would need to give yourself minimum 240k however to take advantage of the full allowable 60k SEP IRA contributions for yourself.
 
GoBeers said:
I have an S-corp and am 1099. the problem with expenses is you still have to spend money though. It's an easy call when it comes to cars , food, office supplies though. ultimately the best part of it is taking advantage of the dividend component. Although the age old question is "what is reasonable salary" and I hear vastly different figures in pain management. With that being said, you would need to give yourself minimum 240k however to take advantage of the full allowable 60k SEP IRA contributions for yourself.
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And of course your 3 year old has to get paid 50k for a 1 hour shoot and your spouse has to get paid 65k to keep track of records that you actually do yourself. Hmm still missing 600k in deductions to get to that 10% tax rate. Maybe that addition to your house is a new office you work in?
 
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chessknt said:
And of course your 3 year old has to get paid 50k for a 1 hour shoot and your spouse has to get paid 65k to keep track of records that you actually do yourself. Hmm still missing 600k in deductions to get to that 10% tax rate. Maybe that addition to your house is a new office you work in?
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office home deductions are awesome but that is one easy possible red flag for IRS to get curious, which is why I have avoided taking advantage of that situation even though I do actually conduct telemedicine visits from home occasionally. But there is no way the "majority" of my time working is at home.
 
OptionOffense said:
You watch too much CNN. Stop that.
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pgg said:
No

aneftp is "aggressive"

He freely and frequently posts about his colleagues / acquaintances committing tax fraud.

Nothing wrong with a home office deduction if you are careful about it. An anesthesiologist who employs a spouse to knock away another $58K in a 401k is committing a crime, full stop. Seriously - there's nothing legit there. Deductions to bring the tax bill for $1.2M in wages down to a $100K tax bill aren't legit. Come on.

Read his posts. They're on this page in this thread. Let's not all just nod along and pretend it's a good idea.

They've been getting away with it, so far. 87,000 new IRS employees will increase their risk of audit. I don't see how this is really that controversial.
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But the surgeon who employs his wife to "manage" his office is fine?
 
chessknt said:
And of course your 3 year old has to get paid 50k for a 1 hour shoot and your spouse has to get paid 65k to keep track of records that you actually do yourself. Hmm still missing 600k in deductions to get to that 10% tax rate. Maybe that addition to your house is a new office you work in?
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Jokes on you - I have multiple wives and children. All for that sweet sweet tax write off.
 
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pgg said:
No

aneftp is "aggressive"

He freely and frequently posts about his colleagues / acquaintances committing tax fraud.

Nothing wrong with a home office deduction if you are careful about it. An anesthesiologist who employs a spouse to knock away another $58K in a 401k is committing a crime, full stop. Seriously - there's nothing legit there. Deductions to bring the tax bill for $1.2M in wages down to a $100K tax bill aren't legit. Come on.

Read his posts. They're on this page in this thread. Let's not all just nod along and pretend it's a good idea.

They've been getting away with it, so far. 87,000 new IRS employees will increase their risk of audit. I don't see how this is really that controversial.
Click to expand...

I understand what you’re saying, but I was simply referring to your prior post. If someone gets audited and presumably passes, then how exactly have they cheated or committed tax fraud?

I agree anefpt walks a much tighter rope than most and is very vocal about it. I also agree it’s flat out fraud to put your spouse on the payroll. But what he does is the exception rather than the norm. Anytime someone in this thread or on this forum brings up the various legitimate ways to deduct business expenses, it’s immediately labeled as fraudulent and ripe for audit. That’s just simply not true.

Also, I’m surprised such a fierce libertarian as yourself is arguing for us to pay more taxes than we have to!
 
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thinkorswim said:
I understand what you’re saying, but I was simply referring to your prior post. If someone gets audited and presumably passes, then how exactly have they cheated or committed tax fraud?

I agree anefpt walks a much tighter rope than most and is very vocal about it. I also agree it’s flat out fraud to put your spouse on the payroll. But what he does is the exception rather than the norm. Anytime someone in this thread or on this forum brings up the various legitimate ways to deduct business expenses, it’s immediately labeled as fraudulent and ripe for audit. That’s just simply not true.

Also, I’m surprised such a fierce libertarian as yourself is arguing for us to pay more taxes than we have to!
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My ortho and plastic surgeon buddies put their wives on the payroll. This is not uncommon.

This has been going on for the last 50-60 years folks. It’s not something new.

Now people stop putting their kids on the payroll around 30 years ago. But the spouse with official duties is legit expense.
 
aneftp said:
My ortho and plastic surgeon buddies put their wives on the payroll. This is not uncommon.

This has been going on for the last 50-60 years folks. It’s not something new.

Now people stop putting their kids on the payroll around 30 years ago. But the spouse with official duties is legit expense.
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What duties?
 
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