You’re probably sick of hearing about taxes right now, and don’t want to think about them for another year…
But I’ve got a loophole you can use to get this income 100% tax-free!
The trick I’m about to reveal allows you to rent your home to yourself, and legally skip the taxes on it!
It takes ZERO work and is something every homeowner should be taking advantage of…
All you need to get started are the following:
- You need to own a home
- You need to own an LLC, S-Corp, or any type of corporation
If you don’t have a corporation, you should know it’s much simpler to create one than you think!
You don’t need a thriving business or employees or any of the complex stuff (although it doesn’t hurt)…
If you’re making income from any sort of business activity or opportunity, you should be taking that income through a corporation to take advantage of many benefits, but we’ll save that topic for another day.
For now, we’re talking about the Augusta Rule.
You’ll see how the corporation ties in with this all in a moment, but first let me explain the Augusta Rule–otherwise known as Section 280A(g).
The Augusta rule states that you can rent your home out for 14 days a year and the income from it will be tax-free.
It’s called the Augusta Rule because every year when the Masters golf tournament comes to Augusta, Georgia, the residents clear out and rent their homes out for a large sum.
Now, the best part of what I’m going to reveal is that you don’t have to leave your home or even rent it out to anybody to take advantage of this tax-free income.
Here’s the loophole that requires the corporation…
You can rent your home out to your own corporation for a “Monthly Shareholder Board meeting”.
As far as how much you rent it out for, I would suggest researching fair market price for daily rentals in your area.
You never want to be greedy when it comes to dealing with taxes and the IRS, but if you can find Airbnb’s renting out for $1,000 a night, that’s $14,000 in tax-free income a year!
Hint: Strategically Plan Your Rentals During High Market Rent Times
If your home is near a popular venue or area that sees a period of high demand, you can schedule your board meeting around that time to keep your rent in line with the high prices during that time.
That’s $14,000 that the Government isn’t dipping their hands into when it comes around to tax-time.
On top of that, it’s also considered a tax deduction on the business-side as it is considered a business expense!
If you don’t have a corporation and are unwilling to file one, you can still take advantage of the Augusta Rule by actually renting out your house for 14 days a year.
Either way, YOU can take advantage of this 100% tax-free income!
