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/