The Augusta Rule: How Golf Influenced Legislation and Created a Unique Tax Strategy for Business Owners

27 Pages Posted: 28 Aug 2023

See all articles by Nate Mallory

Nate Mallory

Texas A&M University School of Law

Date Written: June 14, 2023

Abstract

I.R.C. § 280A(g), commonly referred to as the “Augusta Rule,” is an ideal tax strategy for small business owners. Added to the Internal Revenue Code (“I.R.C.”) in 1976, this statute was in response to a need by homeowners in Augusta, Georgia, who would rent their homes during the Masters Golf Tournament. By following statutory requirements and using “fair market value,” business owners can claim fourteen days of rent from their personal residence as tax-free income and can inversely deduct this rent as a business expense, allowing them to “double dip” from the benefits of the statute.

Keywords: Tax, Internal Revenue Code, 280A, Augusta Rule, Deduction

JEL Classification: K34

Suggested Citation

Mallory, Nate, The Augusta Rule: How Golf Influenced Legislation and Created a Unique Tax Strategy for Business Owners (June 14, 2023). Available at SSRN: https://ssrn.com/abstract=4547393 or http://dx.doi.org/10.2139/ssrn.4547393

Nate Mallory (Contact Author)

Texas A&M University School of Law ( email )

1515 Commerce St
Fort Worth, TX 76102
United States

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