Secrets to Hiring Your Kids the Tax-Smart Way so they Earn Income with Cherry Chan, Episode 027

Today’s guest is Cherry Chan, an author, blogger and Chartered Professional Accountant to entrepreneurs and real estate investors for over 8 years.

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Today’s Guest

Cherry Chan

Cherry Chan is an author, blogger and Chartered Professional Accountant to entrepreneurs and real estate investors for over 8 years. She was named “Top 50 Women in Accounting” globally in 2018.  She has been a real estate investor for over 10 years and owns a double-digit portfolio of investment properties. Cherry is in high demand as a speaker for her tax knowledge as it relates to investing, small businesses and especially real estate, intending to be the Google map of hardworking Canadians seeking financial freedom.  She has deep knowledge and expertise in Canadian taxes, including strategies to minimize taxes and maximize income.  Cherry is also a philanthropist, co-founding a charity with her husband, dedicated to helping less fortunate local Hamilton families and children.  And of course, she is also a wife, and mother to 2 young kids.

• Buy tickets and attend the Wealth Hacker Conference November 12, 2022 | Or get more info here and use promo code “MONEYDAD” for exclusive 50% off MoneyDad listener tickets.  I’ll be speaking on a panel at the event!!
• Real Estate Tax Tips | Website | Instagram | Facebook | TikTok | Youtube

You’ll Learn:

• Cherry’s exposure to money and finance growing up and relationship with money
• Cherry’s journey from her early days working at an auditing firm to becoming a realtor to now owning her own tax and accounting business working with real estate investors, being an entrepreneur and helping people achieve financial freedom
• When and how to pay our kids an income, while also having it deductible for us for tax purposes
• What family situations where we can achieve income splitting and when we cannot
• The rules we need to follow to make sure we are onside with Canada Revenue Agency (CRA)
• How Cherry involves her young kids in her business to help teach them about earning money, while also deducting it as an expense
• If the income provided to our kids is subject to withholding taxes, CPP, EI
• An advanced tax strategy that utilizes setting up a family trust to invest invest in publicly traded stocks, earn dividend income, and distributes that income to the kids tax free, up to $35,000 per child
• How she setup her kids with life insurance policies, that when her kids turn 18, will have a cash surrender value  in the policy that can be borrowed against to fund her kids post-secondary education
• The benefits of showing the failures and successes of her own entrepreneurship journey to her kids
• The moment this summer that sparked her to putting more effort into coaching her kids and guiding them about money
• What everyday hard-working Canadians can expect when they attend the upcoming Wealth Hacker’s Conference on November 12

Resources

• Episode 020: Giving Hands-On Financial Knowledge to our kids with Deborah McMillan from Knowledge Makes Cents
• The 5-hour School Week by Kaleena Amuchastegui
• Follow and tag moneydadpodcast on Instagram to comment on topics and ideas discussed during the episode that resonated with you or share with a friend

Thanks for listening!

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Thanks to Cherry for joining me this week! 

In case you missed it, make sure to catch up on last week’s episode “Episode 026: Build Your Child’s First Nest Egg through a Chore and Allowance App with Annie Shoen and Nicolle Hood”!