Is paying my non-resident spouse a consulting fee through my foreign-owned LLC actually deductible?
I run a foreign-owned single-member US LLC and my wife (also non-US resident) helps me with bookkeeping and customer service work that I'd otherwise have to outsource. I'd like the LLC to pay her a consulting fee — partly to recognize the work, partly because it might save tax in our home jurisdiction. Two questions: (1) is the consulting fee actually deductible from the LLC's perspective, and (2) what disclosure does it create on Form 5472? I keep hearing about the related-party reporting requirement but I'm not sure how strict it is for spouses specifically.
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