The Augusta Rule: Sweeping Up The Greens

The Augusta Rule is a lesser-known tax strategy despite its relatively simple structure and effective results. The rule originated in the 1970s when residents of Augusta sought to prevent tax issues from renting out their homes during the Masters Golf Tournament. The Augusta Rule allows entities that are taxed as S-Corporations and C-Corporations to generate deductible expenses for their Corporate meetings.

The rule stems from Section 280(A)(g) of the Internal Revenue Code which states: "Notwithstanding any other provision of this section or section 183, if a dwelling unit is used during the taxable year by the taxpayer as a residence and such dwelling unit is actually rented for less than 15 days during the taxable year then: