Get the Look: Gwyneth Paltrow’s Acclaimed Game Room
Gwyneth Paltrow is going through a tough time and while breaking up is difficult, she’s found a solution for the, likely, second hardest thing one might have to go through in their life: redecorating one’s game room.
Goop has the scoop and it’s Windsor Smith’s Room in a Box. Total lifesaver and a helpful tool for redecorating any room in your home if you have some dolla billz to blow on gorgeous cotton candy-colored chairs to play games in. Gwyn gets it almost right: “A beautifully designed home is something we all aspire to, [ed note: true!] but hiring a world class interior designer can be cost prohibitive and eat up most of your budget. [ed note: lol]”
Snark aside, Room in a Box is a cool concept. You start with a room that you want to redecorate and upload all the stats and photos of it in its current state to the design studio’s site, including a note about which pieces you want to keep in that room. You then upload inspirational pictures of your dream room, your price point and other important info like what you want the room’s function to be. A few weeks later, they send you a box with an illustration of your new room (!!), a floor plan, fabric samples and suggestions plus a shopping list for furniture, paint and art. The shopping and assembly are up to you. (And Apple — if you’re Gwyneth.)
Gwyneth used the service to transform the living room/game room in her summer home and the Goop Troop was so into the process that Windsor Smith launched a completely shoppable version of the room inspired by GP’s actual flip.
From a $7,000 white and lavender backgammon table…
…to a dreamy $2,495 lavender chair + $2,800 custom mod stand WITH turntable…
…we would have to agree that this is pretty gorgeous.
Oo! And kinda fun.
We love the idea behind Room in a Box (and making popular dream rooms in its community shoppable for the commonish folk) but think the concept could be recreated for a lot cheaper. Until a similar service is available for the rest of us, may we suggest an economical spin through our Living section? We’re happy to hook you up with affordable projects to try DIYing this weekend ;)
What do you think of Gwyn’s Room in a Box? Is there a piece from it you think you could find or DIY for less? Share below!
Welcome to Selfmade Finance School, our new money series with Block Advisors to help small business owners with their tax, bookkeeping, and payroll needs year-round. This week, we explore the tax implications of bringing family members into your business.
The question for today is this: Does hiring your family members make sense for your business? Let me be clear. This is not a piece about whether hiring your family members makes sense for your relationships with those family members. As someone who is part of a family business, I could fill up a lot more than 600 words on my opinions about that. For today's purposes, we focus on whether it makes sense from an overall "good business and tax implication" perspective. As it turns out, there is a decent amount of tax nuance when it comes to employing your family. Let's break it down based on relationship to the employee:
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Spouses Who Are In Business Together
Personally, if I had to be in business with my husband, it would not go well. However, many couples build viable, strong businesses together and I say, good for them! Depending on how you have your business entity structured, it will make a big difference on the tax treatment of you and your spouse working as partners. Because a business jointly owned and operated by a married couple is generally treated as a partnership for Federal tax purposes, the spouses must comply with filing and record keeping requirements imposed on partnerships and their partners. The election to file two Schedule C (Form 1040) forms, (one for each spouse) permits certain married co-owners to avoid filing partnership returns, provided that each spouse separately reports a share of all the businesses' items of income, gain, loss, deduction, and credit. Under the election, both spouses will be subject to self-employment tax and on net earnings from self-employment and receive credit for Social Security earnings.
One Spouse Employs Another
If you have a dynamic where your spouse is an employee of your business, then your spouse's wages are subject to income tax withholding, Social Security and Medicare taxes. If you are self-employed (not a corporation or a partnership), your spouse's pay does not have to be included in your federal unemployment tax account (FUTA) contributions and payments. However, if your business is a corporation or a partnership you must include that spouse's pay in your unemployment tax contribution calculation.
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You Employ Your Child
First, let's be clear. I work in my family business, but I am an adult, so I am treated just like a normal employee. However, if you, for example, run a family restaurant and want to hire your children under 18 to work for you, there are some tax benefits. But first, you should check with your state for rules on how many hours minors can work (in non-agricultural jobs) and reference the Fair Labor Standards Act for information on limitations on the kinds of work children can perform.
"This is an often overlooked or under-utilized strategy. Paying your children for true services they provide in your business can be a powerful tax-saving tool," says Cathi Reed, Block Advisors Regional Director. "If you are a sole-proprietorship or single member LLC, and the child is less than 18 years of age, the business is not required to withhold FICA or payroll taxes. The child can use his or her standard deduction against income you pay."
You Hire Your Parent
Oh dear. If you are brave enough to do this, know that you will need to pay Social Security and Medicare taxes on your parent's wages and make the appropriate withholdings, but you don't have to pay unemployment taxes. Now all you have to do is convince your parent that you are the boss. Have fun with that!
Is Hiring Family Members Worth It For The Tax Benefits?
"There are some positive tax advantages to hiring family members. It's important to treat a family member like any other employee. Hiring your children can result in substantial savings for businesses. Make sure your child has real, age-appropriate work to do and a reasonable pay rate, comparable to other employees. Consult with a Block Advisors small business certified tax pro to ensure that you are complying with all requirements," advises Reed. "Block Advisors, a team within H&R Block, is dedicated to meeting the tax, bookkeeping and payroll needs of small business owners year-round. To start working with the tax experts at Block Advisors, visit blockadvisors.com."
In my opinion, you should not hire a family member solely because of the tax benefits. You should always hire based on whether that person is right for the job and keep in mind how this hire could materially impact your relationship with that person and others in your family. Finally, as I mentioned, make sure you have a tax professional on your team when making these determinations. As you can see, things can get a little tricky!
*All details were sourced from IRS.gov and blockadvisors.com