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The Augusta Rule Explained for CPAs
Learn how to use the Augusta Rule (IRC Section 280A(g)) to help your clients legally earn tax-free income by renting out their home for up to 14 days per year. This video is tailored for CPAs or tax professionals unfamiliar with the Rule who are looking to add value and planning strategies to their practice.
- What is the Augusta Rule?
- Who qualifies to use it?
- How can business owners take advantage?
- Documentation best practices
Whether you’re advising small business owners or looking to stand out with proactive tax planning tips, this quick video will get you up to speed.
Video Transcript:
0:00
so you’re a tax professional You have
0:02
some familiarity with the Augusta rule
0:04
but we’re here to dig a little bit
0:07
[Music]
0:10
deeper Let’s tell you where to not learn
0:12
about it Tik Tok If you want to learn
0:15
what not to do and what the rule is not
0:17
and cannot be go to Tik Tok It’ll also
0:20
be highly amusing frustrating If you
0:22
want to learn what the rule actually is
0:24
it’s really pretty simple Go to code
0:26
section 280 cap G2 and it’s going to
0:30
tell you that a taxpayer can rent out a
0:33
personal residence for up to 14 days per
0:36
year tax-free It’s nicknamed the Augusta
0:39
rule because what made it popular what
0:40
got people listening to it and hearing
0:42
about it was the press coverage of
0:45
people on the Augusta Golf Course when
0:47
the tournament would come in renting out
0:49
their homes for 10 $20,000 per day
0:52
making sure they rented the homes for
0:54
only 14 days or less So reaping a
0:57
windfall and paying absolutely no taxes
1:00
on it We put a little bit of a twist on
1:02
it A lot of people don’t want to let
1:04
strangers into their home So they’re not
1:05
willing to rent it out to whomever shows
1:08
up That could get entertaining or bad
1:10
They’d rather rent it to themselves And
1:13
done properly it works We start
1:16
involving more code sections Because a
1:18
taxpayer is renting the property to
1:21
their business more complexity is
1:23
involved Strings are attached We’re
1:25
going to walk through those strings one
1:26
by one in great detail to show how this
1:29
really is not a gray concept renting
1:32
your personal residence to a business
1:36
The business gets a tax deduction The
1:38
taxpayer receives the money and pays no
1:41
income tax on it It’s a little bit
1:43
complicated We’ll walk you through it
1:45
We’ll make it simpler What’s the problem
1:48
There’s a checklist for the clients A
1:50
lot of clients just don’t want to do it
1:52
You know how entrepreneurs can be They
1:54
want to do their thing They view all of
1:56
us tax professionals as backroom
1:59
nuisances We can simplify things If you
2:02
want a detailed discussion of the law
2:04
and guaranteed results for your clients
2:07
sign up at theaugustarrule.com
2:10
but we’re here to dig a little bit
0:07
[Music]
0:10
deeper Let’s tell you where to not learn
0:12
about it Tik Tok If you want to learn
0:15
what not to do and what the rule is not
0:17
and cannot be go to Tik Tok It’ll also
0:20
be highly amusing frustrating If you
0:22
want to learn what the rule actually is
0:24
it’s really pretty simple Go to code
0:26
section 280 cap G2 and it’s going to
0:30
tell you that a taxpayer can rent out a
0:33
personal residence for up to 14 days per
0:36
year tax-free It’s nicknamed the Augusta
0:39
rule because what made it popular what
0:40
got people listening to it and hearing
0:42
about it was the press coverage of
0:45
people on the Augusta Golf Course when
0:47
the tournament would come in renting out
0:49
their homes for 10 $20,000 per day
0:52
making sure they rented the homes for
0:54
only 14 days or less So reaping a
0:57
windfall and paying absolutely no taxes
1:00
on it We put a little bit of a twist on
1:02
it A lot of people don’t want to let
1:04
strangers into their home So they’re not
1:05
willing to rent it out to whomever shows
1:08
up That could get entertaining or bad
1:10
They’d rather rent it to themselves And
1:13
done properly it works We start
1:16
involving more code sections Because a
1:18
taxpayer is renting the property to
1:21
their business more complexity is
1:23
involved Strings are attached We’re
1:25
going to walk through those strings one
1:26
by one in great detail to show how this
1:29
really is not a gray concept renting
1:32
your personal residence to a business
1:36
The business gets a tax deduction The
1:38
taxpayer receives the money and pays no
1:41
income tax on it It’s a little bit
1:43
complicated We’ll walk you through it
1:45
We’ll make it simpler What’s the problem
1:48
There’s a checklist for the clients A
1:50
lot of clients just don’t want to do it
1:52
You know how entrepreneurs can be They
1:54
want to do their thing They view all of
1:56
us tax professionals as backroom
1:59
nuisances We can simplify things If you
2:02
want a detailed discussion of the law
2:04
and guaranteed results for your clients
2:07
sign up at theaugustarrule.com
2:10
