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FOR IMMEDIATE RELEASE CONTACT: A Surprising Valentine's Day Gift that Keeps Giving All Year Long Staatsburg, NY -- "Add up the tax deductions created in the first year of using the SEC for many self-employed business owners, and in most cases you can cover the cost of installing a romantic fireplace," says ROBERT GREENE, CPA, CMA, the creator of the SEC, or Spouse Employment Contract. "As for the bearskin rugs, firewood, and bottle of good wine that provide the finishing touches, those go to your spouse/employee as a 100% tax deductible gift." Greene, an expert on business and home business tax planning, created the Spouse Employment Contract (SEC), which has specific benefits in 16 different categories. It took several years to finalize, bringing together many technical points scattered throughout the tax codes, and is rigorously kept up-to-date as tax law changes. Greene's clients have saved thousands over the years using the SEC, with no attention from the IRS. That's because the SEC is 100% according to code. In fact, every paragraph in the contract is carefully referenced to the specific section of tax codes that it relates to. Greene also recommends using Valentine's Day as a calendar marker for tax planning season. In addition to closing out 1998 books, savvy entrepreneurs and their tax advisors should use the first quarter to plan their tax strategy for 1999. One part of that planning should be looking into hiring their spouse and using the SEC to maximize the use of legitimate tax deduction opportunities. "If saving thousands of dollars in tax deductions isn't romantic enough for you," says Greene, "think about that fireplace – paid in full, without you having to work additional hours or be away from your home and family. It's not just romantic – it's good business." The entire SEC concept grew from a 1994 private letter ruling, where the IRS allowed a self-employed professional to hire his/her spouse as an employee and provide medical insurance to the spouse and the spouse's dependents as an employee benefit, 100% tax deductible and at no tax cost to the employee/spouse. One significant requirement: a contract between employer and employee/spouse must be in place beforehand to document and define the employer's contractual obligations and the employee's job responsibilities. The contract documents the relationship, responsibilities, compensation and extensive employee benefits. Without the contract, this kind of arrangement isn't legal and won't work. But with it, the tax savings are impressive.
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Content © 1999, Robert J. Greene, All Rights Reserved | |