What Is the "Augusta Rule" (Section 280A) and How Does it Work?
Question: What is the "Augusta Rule", and how does it work?
Answer: The "Augusta Rule" is a tax deduction for business owners. In summary, IRS Section 280A provides a way for homeowners to rent out their home for up to 14 days per year. The income is tax-free and doesn't need to be reported. There are many ways for business owners to capitalize on this deduction. However, you'll need to make sure you understand the eligibility, qualifications, and reporting and documentation requirements. All tax pros should look to apply the Augusta Rule in strategic tax planning with their clients.
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