1 result for tag: Tax Regulations


Tax-Free Income from 14-Day Augusta Rule for S Corporation Owners

IRC Section 280A(g), also known as the Augusta rule, states:1 “Notwithstanding any other provision of this section or section 183, if a dwelling unit is used during the taxable year by the taxpayer as a residence and such dwelling unit is actually rented for less than 15 days during the taxable year, then— No deduction otherwise allowable under this chapter because of the rental use of such dwelling unit shall be allowed, and The income derived from such use for the taxable year shall not be included in the gross income of such taxpayer under section 61.” Example: Fred rents his home at $3,000 a day for 14 days. Under the Augusta ...