IT isn’t only the golfers who will be taking home big money in Augusta this weekend.
Homeowners near Augusta National are reaping the rewards of The Masters being right down the road.
ReutersPatrons are flocking to Augusta to watch the Maters and spending big on rentals[/caption] GettyA tax rule allows homeowners to rent their homes for 14 days without paying any taxes[/caption]For those who live near the course, they can cash in big by renting their home to patrons coming to view the tournament.
Heading into the Masters week, more than 16,400 nights were booked at companies like Airbnb and Vrbo, acccording to Front Office Sports.
It’s 11 percent higher than last year’s influx of visitors and equates to around $8.5 million in revenue over seven days.
A typical month in August only generates around $3 to $4 million
One might think that a hefty cut of that revenue would go to taxes, but a new law is allowing homeowners to reap the full rewards of The Masters week.
Homes in Augusta can rent for over $30,000 this week, and a tax rule allows the owners to keep 100 percent of the income.
Aptly titled the Augusta rule, homeowners can rent out their primary residence for up to 14 days a year without paying tax on the income.
This rule was initially created just for the town of Augusta, which homes around 200,000 people, but now it is available to everyone.
IRS Code Section 280A(g) states that as long as the rental price is reasonable and the home isn’t the location of your business, there will be no taxes on the rental.
That means some homeowners will take home tens of thousands of dollars in income, keeping every penny of it.
An interesting caveat of this rule is that business owners can rent out their home to their business for 14 days of tax free rental income.
Of course, not all rentals are worth $30,000. The average daily rate for Augusta rentals this week is $514, according to Front Office Sports.
Still, across a full week that is thousands of dollars that a family can keep to use as they need.
American homeowners are starting to take notice of his rule and shared their thoughts of how to apply it on social media.
EPAThe tax rule was made just for Augusta, but is now available to all Americans[/caption]“Could see many doing this for the 2028 LA Olympics,” one fan said.
“Smart tax rules aren’t just for the rich—they’re for anyone paying attention,” another fan said.
“Gonna make an absolute killing during the World Cup man,” a third fan said.
“This is a Masterful idea,” a fourth fan said.
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Finally We wish PressBee provided you with enough information of ( I live next to Augusta National – I make $30,000 from renting it out for ONE week and new IRS law means I make even more )
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