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The Augusta Rule tax strategy provides become increasingly popular among business owners searching for legal ways to be able to lower taxable earnings. Named after Augusta, Georgia, the location where the rule originated, it allows house owners to rent their particular personal residence to be able to their business for up to 14 days per year with out having to review that rental salary. What this means is you can easily rent your home to your business tax free but still take the expense from the company’s books, developing a win-win situation. For many entrepreneurs, this IRS Augusta Rule 14 days benefit offers the easy way to be able to move money out and about of the company while keeping the transaction fully certified with tax regulations. It may seem like a small personal savings opportunity, but more than the years that adds up substantially. Imagine hosting table meetings, employee training sessions, or method gatherings in your house for just two months a year. The nightly rental payments your company makes are allowable for the company, while you as the homeowner delight in tax-free income. It’s a straightforward and quite often underutilized method regarding reducing taxes with no complicated paperwork. The particular best part is that it doesn’t require preparing new entities or perhaps going through more hoops. With proper documentation, it’s one particular of the cleanest strategies available. Company owners who want in order to optimize tax savings should take a look at just how the Augusta Rule tax strategy can fit into their very own overall plan.