TPaying teen cash for yard work at your property

[Larry Bondar]

Want to hire a minor to clean up yard on a investment property Some basic yard work for cash. Can I write this off as a deduction? Also how would I set this up to legally have him working at the property?

[Eamonn McElroy]

Assuming the minor is your child, which, I don't know that you'll be able to legally hire them if they're not, they'll most likely be categorized as an employee for federal tax purposes.

You should discuss with your tax advisor regarding running payroll and issuing a W-2, as well as opportunities such as a Roth IRA for the child.

Some people might just write a check and issue a 1099, but that's not proper if the child would be appropriately classified as an employee under law.

Usually this strategy does not make sense unless you plan on paying the child at least a few thousand during the year.  For a few hundred, you're better off just increasing their allowance and giving them a list of chores to avoid the administrative headache.