Elite Tax & Business Services Inc

02/13/2026

Here's a half time show

01/16/2026

Went for a walk.

01/13/2026

Most business owners are surprised to learn that they can legally move money from their company to themselves completely tax-free—and still deduct the expense. This opportunity comes from the Augusta Rule under IRC §280A(g), which allows a homeowner to rent their personal residence for up to 14 days per year and exclude that rental income from federal taxation. When structured correctly, a business can rent the owner’s home for legitimate purposes such as board meetings, planning sessions, or trainings, deduct the rental expense, and shift income to the owner without triggering tax.

To make the Augusta Rule work, there must be a bona fide operating business entity, most commonly an S corporation, C corporation, or partnership. Sole proprietors generally do not qualify because renting property to yourself lacks sufficient legal separation. The business must have a valid business reason for using the home, a written rental agreement, contemporaneous documentation like agendas and minutes, and actual payment from the entity to the homeowner to support the deduction.

The rental rate must be reasonable and defensible. Fair market value should be established using comparable short-term rentals, local event or conference space pricing, or hotel meeting room rates in the same geographic area. Considerations such as square footage used, length of use, amenities, and location all factor into pricing. Conservative, well-supported rates are essential, as excessive charges increase audit risk and can undermine the entire strategy.

Call now to connect with business.

01/12/2026

To qualify for Real Estate Professional Status (REPS)* under IRC §469(c)(7), all of the following must be met:

1. More than 50% of personal services
You must spend more than half of your total working time during the year in real property trades or businesses in which you materially participate.

2. 750-hour requirement
You must perform at least 750 hours during the year in real property trades or businesses (e.g., development, construction, acquisition, rental, management, leasing, brokerage).

3. Material participation
You must materially participate in each rental activity **or** make a §469(c)(7) aggregation election to treat all rentals as one activity.

Key notes:

Hours as an employee only count if you own>5%of the employer.
Spouse’s hours count toward tests if filing jointly.
Contemporaneous time logs are critical.

Failing any one test means rental losses remain passive.

01/12/2026

New “Trump IRA” accounts created under the OBBBA give kids a head start on long-term savings—with the federal government seeding a one-time **$1,000** contribution for children **born 2025–2028** and then allowing parents, relatives, or others to contribute up to **$5,000 per year** (with employers able to add up to **$2,500** of that) through the year the child turns **18**; funds generally can’t be withdrawn until age 18 and then the account transitions to function like a traditional IRA for the beneficiary’s future financial goals. ([bdo.com][1])

Call now to connect with business.