Episode 79: Using the Augusta Rule to Create Tax Free Income

In this episode, President and Senior Financial Planner Paul L. Moffat is joined by Director of Financial Planning Jordan Naffa to break down the Augusta Rule, a powerful and often overlooked tax planning strategy for business owners. Properly implemented, this rule allows qualified homeowners to generate tax-free income while their business receives a legitimate deduction.

Paul and Jordan explain the history of the Augusta Rule, how it works under IRS Section 280A, and why documentation is critical to its proper execution. They walk listeners through the step-by-step process business owners should follow, including meeting requirements, fair market pricing, invoicing, and recordkeeping. This episode provides a practical roadmap for those looking to reduce taxes and improve cash flow using strategies already available in the tax code.

In this episode:
● What the Augusta Rule is and how it creates tax-free income
● The history and intent behind IRS Section 280A
● Who qualifies to use the Augusta Rule and why it matters for business owners
● The six documentation steps required to properly implement the strategy
● How to set reasonable rental rates using local comparables
● Why coordination with your tax advisor is essential

The opinions expressed in this podcast are for general purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. It is not intended to provide tax or legal advice. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital: please seek advice from a licensed professional.

Arista Wealth Management is a registered investment adviser. Advisory services are only offered to clients or prospective clients where our firm and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Arista Wealth Management unless a client service agreement is in place.

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