HOME, INC.
          
               However you make a living...or whatever you do as
          a sideline hobby...make a business of it. Say you're a
          computer technician. You work for a company that
          maintains computers.  It sends you out on calls.  You
          get a salary. You drive a company car. 
               Go to your employer and arrange to get off the
          payroll.  Instead, you set up a company, Computer
          Maintenance, Inc. You become a subcontractor to your
          former employer.  The former employer figures out how
          much it actually cost to employ you...health insurance,
          holidays, car, etc....and pays you the total. You now
          deduct the business car, the phone, the office in the
          home. What's more, you hire your family to help.
          Everyone goes on the payroll. Your teenaged daughter
          becomes the receptionist. Your son becomes accounts
          payable clerk, and so forth. Everyone gets a
          salary...all deductible. 
               The kids get paid little...but enough to pay for
          their own clothes and build up enough money to pay
          their own college expenses.  They are in very low or
          negligible tax brackets...so the money is all but tax-
          free. Everything gets deducted. 
               Don't take any more vacations... instead, find a
          place where the company could learn something...like
          Hawaii. Go and take the rest of the employees with
          you...they could probably learn to do a better job,
          improve productivity, and bring more to the bottom
          line. 
               Don't buy any more food for the family. Instead,
          set up a cafeteria near the office...say in the
          kitchen. This would be for the employer's convenience,
          of course. This might not only make meals deductible
          expenses...but it might also make the kitchen a
          deductible portion of your house, including the
          refrigerator, stove, etc. 
               Even the bathroom. The employees need a place to
          go to the bathroom while at work, don't they? 
               And probably some could stand to upgrade their
          skills. The company might have to fork over some money
          in tuition. 
               What about day care?  Your company is responsive
          to employees' needs. So if your employees have small
          children, the company could set up an on-site day care
          center as an employee benefit. Hire a care-provider,
          deduct the expense, and deduct another room in the
          house -- along with day care supplies, diapers, and so
          forth. 
               Our tax advisor is getting nervous. But you get
          the idea.  The family corporation is a gold mine, if
          you can make it work for you. Some of the ideas we
          present in this example, as far as we know, have never
          been tested in the courts. They are logical extensions
          of the principles of U.S. taxation as we understand
          them. 
               But that doesn't mean they will work for you. 
          These cases tend to depend on the individual
          circumstances. If you are operating an ambulance
          service out of your home, for example...and your son
          drives the ambulance and your daughter takes the
          calls...and your wife does the books...the
          possibilities are enormous. If you try to employ your
          three-year-old as a business consultant, however, the
          courts might find that so imprudent as to give rise to
          a suspicion of tax evasion. Be sure to seek competent
          advice, geared to your own individual situation.