Rent your personal residence & vacation home(s) to your S-Corp for tax-free income!

Section 280A(g) of the Internal Revenue Code allows you to rent your personal residence & vacation home(s) for up to 14 days during the year TAX FREE! Your S-Corp will get a rental expense deduction, and you will earn tax free income.

This strategy is informally known as the “Augusta rule”, named after the city of Augusta, GA, where the Master Golf Tournament takes place. People who own homes near the Augusta National Golf Club earned up to $20,000 in tax-free income by renting their homes for the duration of the annual tournament.

Masters Golf Tournament in Augusta, GA.

This is a great opportunity if you have a nice residence and would like to host employee events during the year. Think quarterly meetings, holiday events, etc.

• No, it cannot just be you and your spouse attending the event/meeting.

• No, you cannot just charge any rate you want to your business. Rent has to be reasonable, and fair based on local rates

• Yes, you will need to maintain evidence of what took place (minutes, agenda, perhaps a voice recording which you could get transcribed)

• No, you cannot use the same space as your home office.

For more real estate tax tips, book an appointment with us at www.lobecpa.com and we will help you tax plan and build wealth!