Corvee, a maker of tax planning technology for businesses and tax pros, has added Augusta Rule deduction filing guidelines into its Instead and Instead Pro tax planning systems.
The Augusta Rule, known as Section 280A by the Internal Revenue Service, allows homeowners in any income bracket to rent out their homes for up to 14 days without the obligation to report the rental income as taxable on their tax return. The nickname is derived from the practice of taxpayers renting out their in homes as temporary lodging during major sporting events hosted in, or near, their city.
Instead and Instead Pro offer seamless Augusta Rule savings estimation to help plan, calculate, document and file a return. Users can leverage Instead to:
- Discover and manage comparable rentals to maximize savings
- Construct and sign a rental agreement
- Document the business purpose, substantiating the deduction and the transfer of tax-free income to personal accounts
“We developed Instead to offer businesses and accountants an easy-to-use solution for managing and optimizing R&D tax credits. The addition of Augusta Rule calculations to the product enhances our clients’ capabilities, offering one more powerful tool to have in their arsenal,” states Andrew Argue, CEO and co-founder of Corvee. “By utilizing the Augusta Rule, individuals can rent out their homes or vacation properties to their businesses, not only accepting rental income tax-free on their personal returns, but also deducting the rental costs on the business return.”
For more information on Instead, visit www.instead.com.
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Tags: Taxes
