.I<br > Everyday<br > Money Management<br >Run Personal Finances and hired their three children， aged 7， 11 and<br > 12， to work there. The children cleaned the<br >Like A Business grounds， did landscaping work， maintained<br > the swimming pool， answered phones and did<br > Most executives neglect their personal minor repair work. The taxpayers deducted<br >finances because they are too busy with their over $17，000 that they paid to the children<br >jobs or businesses. That s a serious mistake， during a three-year period. But tile IRS<br >Stay alert for opportunities to save and profit: objected， and the case went to trial. Court s<br > Pension plans. Business owners and the self- dec/sion: Over $15，000 of deductions were<br >employed can take advantage of special pen- approved. Most of the deductions that were<br >sion options open to them. If you are making disallowed were attributable to the 7-year-old.<br >$100，000 a year， you could easily put away But even $4，000 of his earnings were<br >$30，000 pre-tax into a defined benefit pension approved by the court.<br >plan. Greater earnings may justify even larger Key: The children actually performed the<br >contributions. Compounding tax-free dollars work for which they were paid. And the work<br >gives an enormous investment edge. was necessary for the business. The taxpayers<br > A favorite tax-planning tactic is to have a demonstrated that if their children had not<br >minor child work for the family-owned busi- done the work， they would have had to hire<br >ness. Over three thousand dollars earned by someone else to do it.<br >the child is tax-free， and further income is Types of jobs children could do: Write<br >taxed at low rates. In addition， the company checks or send out bills for your business， do<br >gets a deduction for the child s salar): Now， a simple maintenance and painting for invest-<br >dramatic taxpayer victory shows just how ef- merit real estate you own， etc.<br >fcctive this tactic can be.<br > Set a spouse up in business. Most male<br > Tht- taxpayers owned a mobile home park executives don t realize the tax benefits the)，<br >