Wife in dual relationship with Husband as "employee"

[NYC-KK 0]

Hello,

I thought of a potentially creative way to save money and put my wife to work, but I'm not sure (1) if it is legal (that question I would leave to my accountant to decide) and (2) if it might raise the eyebrows of immigration officers and have a negative impact on the lifting of conditions. The latter question is my primary concern to be addressed in this post. After reading and considering my plan, as described below, please comment based upon your knowledge and experience. Just tell me what you think the risks are, if any. Thanks.

First, I plan to be sole proprietor in a business importing arts and crafts from Thailand. Second, I would hire my wife by sending her salary for the year to Thailand. Thus, I would be able to declare the amount I send her as a tax deductible business expense. Also, I believe that she would not have to declare this amount on our joint statement to the IRS. I am wondering, however, if immigration officials are likely to find this in our 2010 tax return and use it against us.

Edited May 30, 2010 by NYC-KK

[Brother Hesekiel 2,236]

There is no negative impact on having your wife as an employee. The tax implications are something you'll have to discuss with a tax professional.