A good amount of business owners are aware that you can deduct a portion of your home used for your business through the home office deduction. Besides taking this great deduction did you know that you can also treat your home as a rental property and rent it out to your business a set number of times per year. It would become a deductible business expense however it would not be considered rental income as long as it does not exceed the allotted amount of days per year to be considered a rental.

This is a great tax strategy than many business owners are able to utilize, however they are unaware of it. It is a great way to have board meetings, team meetings or training, holiday parties and other functions for you and those on your business team. Rather than spending money to rent out somewhere outside of your home or booking a restaurant, set up your home as a place that is able to entertain and host for business purposes.

The tax provision that allows for this deduction is called the Augusta Rule. It is called Augusta rule. It was created originally to protect residents in Augusta, Georgia, who allow spectators to rent their home while attending the annual Master's golf tournament. This tax law provision was made for this purpose and as a result is available for all business owners.

Utilizing this tax provision can add you an additional thousands of dollars of tax deductions that you did not have for your business before, all without spending additional funds to obtain that deduction due to paying yourself as the homeowner.

If you want to learn more about how we can implement this tax planning strategy into your business lets schedule a call!