今日同大家分享一下一個慳稅的方案。呢個方案出自IRC 280A(g)，見圖2。呢個方案又名為Augusta rule，至今唯一一個以地方命名的法案。 Augusta是一個在Georgia的城市。由於當地經常舉行高爾夫球賽，於是當地民眾喺20世紀70年代嘅時候與IRS進行交涉，當地民眾希望將自己收到嘅短租收入唔當成收入，於是美國國會加了IRC 280A(g)將呢個稅法推行至全國。後人為了記念呢件事就稱呢個法案為Augusta rule。 講左咁耐，大家都係想知道運用方法，舉個例子俾大家睇吓 。假設你係一個C Corp 股東希望從公司攞$1000出黎洗，一般情況下呢$1000會係Dividend，年尾會出返一張1099Div，然後大家完成Double taxation嘅重要使命。 然而透過Augusta Rule，股東可以出租自己嘅屋企俾公司14日，公司會多左$1000租金費用，從而減低了Taxable Income，至於股東收到的$1000租金並不算為收入，見IRC 280A(g)(2)。股東不需要向IRS 申報這個收入。 最後都循例講返句，例子只係解釋呢個稅務概念，並不代表任何稅務建議。想知你係咪符合使用條件，請大家私下諮詢我地世一會計。 Today, I would like to share a tax-saving scheme with everyone. This scheme comes from IRC 280A(g), as shown in Figure 2. This scheme is also known as the Augusta rule, the only law named after a place.
Augusta is a city in Georgia. Since the city frequently hosts golf tournaments, the local residents lobbied with the IRS in the 1970s. The local residents wanted the short-term rental income they received not to be considered as income. As a result, the U.S. Congress introduced IRC 280A(g) to implement this tax law nationwide. To commemorate this event, the law was named the Augusta rule.
Having said that, everyone is interested in how to apply this rule, so let me provide an example. Suppose you are a C Corporation shareholder who wishes to withdraw $1,000 from the company. In the typical scenario, this $1,000 would be in the form of a dividend, and at the end of the year, you would receive a 1099-DIV form, and you would be subject to double taxation.
However, with the Augusta Rule, a shareholder can rent their home to the company for 14 days, and the company would incur an additional $1,000 in rental expenses, thereby reducing taxable income. The $1,000 rental income received by the shareholder does not count as income, as per IRC 280A(g)(2). Shareholders do not need to report this income to the IRS.
In conclusion, this example is meant to explain the tax concept and does not constitute any tax advice. To determine if you qualify for its use, please consult with Primera Accounting Services privately.
