Author Topic: Any landlords hiring their kids?  (Read 786 times)

shanaling

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Any landlords hiring their kids?
« on: December 26, 2020, 09:38:56 PM »
Any landlords hired their kids so that they can contribute to a roth ira at a young age? If so, what age is your child, what did they do, and how much did you pay them?

meandmyfamily

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Re: Any landlords hiring their kids?
« Reply #1 on: December 27, 2020, 12:53:36 PM »
I have wondered about this.  I was thinking my kids can paint and do yard work.

Jesstache

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Re: Any landlords hiring their kids?
« Reply #2 on: December 27, 2020, 01:30:24 PM »
I'm going to follow this as I like the idea.

ilsy

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Re: Any landlords hiring their kids?
« Reply #3 on: December 29, 2020, 11:40:57 PM »
My kids are 12 and 13, and I hire them, especially during rehabs, not so much during regular landlording bc there isn't much to do as a landlord (collecting rent and minor repairs, once in 6m air filter changes and such). I do take my older one to do 'landlording tasks', so she can get exposed to 'handling' tenants and the tenants know her, but she isn't compensated for that.

I do pay my kids during rehabs for painting, minor carpentering, cleaning, mowing, but they are not on a payroll and the payments aren't monetary, but in forms of some games, books, and other items they want to have.

Now, Roth IRA isn't something I contribute myself or plan on doing so in the future. Not sure I would be pushing my kids to contribute there. They each did get a CC this Christmas. But again, I'm more interested in them learning how to churn and sell tradelines as oppose to learning about Roth IRA contributions. 'Saving' isn't high on their priority list at this point.

dorf

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Re: Any landlords hiring their kids?
« Reply #4 on: January 01, 2021, 12:04:16 PM »
I work on getting my kids to help with turning properties.  Yard clean up, painting, etc.  I once employed my kids and their friends to paint the outside of a property.  It was more work wrangling the kids then doing the work myself.  I was still glad to do it it because I think them learning the work involved in what a landlord does is more valuable than anything else.  The kids were all in the 11 - 13 year old range.  They will also cut grass.

Tax wise, it has not been worth it to document their pay so I can do the Roth IRA for them.  I am still working on that aspect.

I am curious about the CC (credit card?) idea.  I've tried getting my older daughter a credit card because I'd like her to start utlizing one to develop the discipline to pay it off every month while I am able to watch over her.  Our bank (BofA) would not issue one because of her age.  How did you, Ilsy, get around the age issue?  Maybe there is a particular card to apply for?

Sibley

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Re: Any landlords hiring their kids?
« Reply #5 on: January 03, 2021, 03:42:27 PM »
Family businesses have been hiring their kids forever. The rules are out there. Rentals are not much different.

Here's one article talking about it:
https://www.taxslayer.com/blog/tax-implications-of-hiring-your-family-members/

Depending on ages and amounts, Kiddie Tax may come into play. I'm extremely out of date on those rules.

Jon Bon

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Re: Any landlords hiring their kids?
« Reply #6 on: January 03, 2021, 04:10:41 PM »
Not yet, (she is 8!)

But she did help me put in a new vanity today. A proud dad just wanted to post that.