The Augusta Rule Explained How to Rent Your Home Tax Free

The Augusta Rule allows taxpayers to rent their home for a limited number of days each year without paying tax on the rental income. In this video, I explain how the Augusta Rule works, where it appears in the tax code, and the requirements you must meet to use it correctly. This strategy is commonly used by business owners who rent their home to their business for meetings, planning sessions, or other legitimate business purposes.

I also walk through the most common mistakes taxpayers make when applying the Augusta Rule and why improper documentation can lead to IRS issues. You will learn how many days qualify, what counts as a reasonable rental rate, how payments should be handled, and when this strategy does not make sense. This video is part of my tax planning series and is designed to help you understand advanced strategies in a clear and practical way.

What you will learn
• What the Augusta Rule is and where it appears in the tax code
• How Section 280A applies to short term home rentals
• The requirements to qualify for tax free rental income
• How business owners use the rule correctly
• Common mistakes that trigger IRS scrutiny
• When the Augusta Rule should not be used

#tax #taxplanningstrategies #taxplanning

About Brian Winrow

Brian Winrow is a tax attorney and educator with extensive experience in taxation, accounting, and business. He holds a J.D., LL.M. in Taxation, DBA, MAcc, and MBA, and is licensed to practice before the U.S. Tax Court. He also maintains active professional certifications in taxation and fraud examination. Brian teaches undergraduate and graduate-level tax and accounting courses and focuses on making complex tax concepts easy to understand. He is the founder of Winrow Tax Services, where he works with individuals and businesses on a wide range of tax matters.

If you're interested in working with Brian or learning more about his tax practice, you can visit Winrow Tax Services at www. winrowtax.com.

Have Questions?

Leave them in the comments! I post regular tax education videos designed to make difficult concepts simple and accessible. If you are seeking to become a client, please direct your questions to [email protected] as opposed to leaving them in the comments.