99. The Tax Strategy Your CPA Never Told You About! The Augusta Rule
Description
The Augusta Rule offers a legal way to transfer money from your business to yourself tax-free by renting your home to your business for up to 14 days per year. This often-overlooked tax strategy allows business owners to deduct the rental expense from their business while receiving tax-free personal income.
• Rent your personal residence to your business for up to 14 days annually without paying personal tax on that income
• Your business can deduct the rental payment as a legitimate business expense
• Determine fair market rent by researching comparable event spaces in your area
• Create and maintain a formal rental agreement between yourself and your business
• Document each use with invoices and calendar entries
• Pay yourself from your business account using traceable methods (transfers, checks, digital payments)
• Monthly strategy sessions are ideal for implementing this strategy while staying under the 14-day limit
• Take photos and keep notes from meetings as supporting documentation
• Rental payments of approximately $1,000 per day are typical, depending on your location
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