Are you aware you can rent out your home for tax-free income? That’s right—for freelancers, solopreneurs, and small business owners who love to travel, renting your property might be an excellent way to earn tax-free income.   

In this episode, Alex covers what the Augusta Rule is and how to take full advantage of renting your home for tax-free income, along with details about Section 280A.

In this episode, you’ll also hear:

• How the Master’s Golf Tournament changed short term rental rules 

• Tips for taking advantage of the Augusta Rule

• Potential benefits of Section 280A for small business owners

Must-listen moments: 

[00:00:37]  You need to know about the Augusta rule. This is the ability to potentially rent out your home for 14 days or less and not have to pay any income or tax on the rental income.

[00:04:08] Go on Airbnb, look at local rentals, look at hotels, figure out what's a reasonable rate you could charge on your home per night. Create the supporting documentation you need, particularly if you are going to rent out your home in a seasonal time, or where there's excessive demand for that period of time.

[00:05:55] If you are a small business owner, this rule can get even more lucrative for you. If you haven't talked to your tax professional team about some strategies of renting your home back to yourself in ways that align well with your business, i.e. doing things like board meetings, strategy sessions, offsite retreats at your home, this is something you need to talk to your team about.

For more details on financial topics curated just for freelancers, visit www.freelancefinancefix.com

You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/

Have you noticed more banks enticing you with higher rates? Higher rates generally mean higher savings but there’s no guarantee to how long this seemingly win/win situation will actually last.

In this episode, Alex shares why banks are offering high rates and why you should review your long term financial goals before making any changes to your current investments.   

In this episode, you’ll also hear:

• Why banks are pushing longer term investment offers

• Inflation as a benchmark for financial planning 

• Long-term power of compounding and equity market’s growth

Must-listen moments: 

[00:02:56] They didn't suddenly decide you are their favorite customer and they want to reward you. They made a business decision and just like every other business, you need to evaluate them and make sure their products are competitive for you and your situation.

[00:03:55] To create real wealth, we need to grow our wealth by more than the inflation rate. If our accounts are growing less than the inflation rate, we are losing what is called purchasing power.

[00:08:51] If you haven't recently, it's time to review your banking relationship and where you have your money market funds to make sure that you're getting a competitive rate of interest as well. 

For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com

You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/

Our last episode, “Are You Maximizing Your Home Office Deductions?”, focused on home office deductions and details about Form 8829 Expenses for Business Use of Your Home. Be sure to review IRS Publication 587 and make sure you're using the most advantageous calculation when determining the business use percentage of your home.   

In this episode, Alex answers the most common questions about home office deductions to ensure your claim is as legitimate as possible.  

In this episode, you’ll also hear:

• Which spaces in your home qualify for deductions  

• Storage use and exclusive use by business 

• Tips for supporting your home office deduction claim  

Must-listen moments: 

[00:03:57] Every home is different and your home's unique layout can give you some advantages or disadvantages when it comes to calculating the home office deduction and percentage of home used for business purposes.

[00:06:24] A great reminder and best practice involving the home office deduction is to take photos of all of the areas you are claiming as a deduction…and if you do store goods anywhere else, take photos of those with clearly marked tape outlining the area for business use.

[00:09:26] You can switch back and forth between the simplified method of calculating the deduction as well as it may make sense in some years and not in others…you are not locked into any method.

For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com

You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/