Hello, I started my first short term rental in June. Your firm helped me set up my LLC. Thank you!
I’m interested in learning how I should treat my FMC from a bookkeeping perspective. I’m finally getting more organized with my books and not sure if my FMC transactions should be recorded separately (I’m using Quickbooks online) from my STR business transaction.
Also, can you talk about the details of paying children out of the FMC particularly when they are under 18 when the business started but are now over 18. I have one 12yr old and one (now) 18yr old. They both have responsibilities in the business I pay them for.
It appears this question was not answered. After reading Marks blog post on this, it seems this strategy of paying children from a FMC is reserved for S-Corps only.
Follow up here…my CPA says my children are employees and should be issued W-2’s. One is under 18 and the other is over 18. I know Mark has said NOT to issue W-2’s for children under 18. What about those over 18; should they NOT be 1099? My over 18 child is cleaning my short-term rental and has started doing my social media marketing. This year the cleaning responsibilities will stop (going off to college), and it will only be social media marketing going forward. Is this a 1099 scenario or a W-2?