The Augusta Rule 280a Explained

The Augusta Rule 280A Explained
The Augusta Rule found in section 280A of the tax code is an often cited, very often misunderstood tax opportunity for business owners. The rule enables business owners to rent their home back to their business for up to 14 days each year tax free, but requires legitimate business use and proper documentation. This video explains the history and relevant details.
00:00 Introduction to the Augusta Rule 280A
00:30 History of Augusta Rule 280A
01:32 What is the August Rule 280A?
02:15 How Businesses Benefit From the Augusta Rule

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[@realrajiv]

Thank you. I have an S-Corp and my primary home of stay is also my primary place of business. Can I still do Augusta/14 days rule. On a side note, I am reimbursing home expenses on 1120S via my S-corp accountable plan and employee expense reimbursement.

[@ThreeOaksWealth]

I don’t see why not. But you should ask you tax professional.

[@ppronti]

Ummm...
How the hell is $1500 income a deduction? I thought it is an expense that is deductible?

[@ThreeOaksWealth]

It's a deductible business expense. Your business pays you the individual $1500 for renting the home. As long as you don't rent the house out for more than 14 days per year you (the individual) don't have to claim the $1500 as income.

[@realrajiv]

Thank you. I have an S-Corp and my primary home of stay is also my primary place of business. Can I still do Augusta/14 days rule. On a side note, I am reimbursing home expenses on 1120S via my S-corp accountable plan and employee expense reimbursement.

[@christinaibanez1988]

I don't believe it can be your business, it has to be your primary residence.