Turn Your Home into a Money-Making Asset
If you're a homeowner eager to boost your income from your primary or secondary residence, the Augusta Rule could be the key to substantial tax savings. This provision allows you to rent out your home for up to 14 days per year without reporting the rental income on your tax returns—a game-changer for savvy property owners.
By taking advantage of this rule, you can turn your home into a money-making asset without the hassle of additional tax paperwork or fees, making it a valuable tool for anyone looking to maximize their returns on their property. (IRS 280A)
Continue reading for 3 things to know about the August Rule!
UTILIZING THE AUGUSTA RULE
Take, for instance, a business meeting or team photoshoot. You can host a team meeting at your home - supplying the space, food, drinks, supplies, and more. These expenses can then be charged to your business via an invoice (home rental fee, food + drink costs, etc.)
The best part - any income earned from leveraging your home is tax-free (if leveraged 14 days or less per year!)
This is huge! Not only are you paying yourself for rental space that you would’ve otherwise paid elsewhere, but you’re also saving on taxes.
Example: Say you were to rent out your home 14x for $2,500 each. That is $35,000 in additional income, and approximately $10,500 ($35,000 x 30% tax bracket) is tax-free savings you could be making EVERY year!
One thing to note, whether using your primary or second home, you cannot use this tax strategy if you are leveraging your property as a short-term or mid-term rental such as Airbnb or VRBO. This only works on properties that do not show any income for the remaining 351 days of the year.
If you're ready to explore advanced tax-saving techniques like the Augusta Rule, empower yourself with expert knowledge. My Business Owner Tax Playbook is an essential resource to enhance your understanding of taxation. Equip yourself with the tools to engage in more meaningful conversations with your CPA and witness significant improvements in your financial outcomes.
Don't miss out on maximizing your property's potential! Start leveraging the Augusta Rule today to unlock hidden tax savings and transform your home into a lucrative asset.
All the best!
Jen
TOOLS + PLAYBOOKS
Ready to read more?
The Landlord Starter Kit provides essential platforms, templates, and strategies to establish strong rental property operations. From comprehensive lease agreement details and move-in/move-out checklists to an order of operations and rental application forms, this kit equips new and experienced landlords with practical resources to manage their rental properties efficiently.