06. IRS Forms & Publications

IRS Forms & Publications

Even though the Augusta Rule income is excluded from taxation, it still interacts with standard IRS forms — especially if:

This page outlines the key forms involved and how to stay compliant.

This is where you normally deduct:

✅ These deductions are still allowed, even if you used the Augusta Rule — because they’re not linked to rental activity under §280A(g).

Normally used to report rental activity.

BUT — if you’re using the Augusta Rule correctly:

If your business accidentally issues you a 1099 for Augusta Rule rental:

Report the 1099-MISC income on Schedule E
Create a matching expense entry labeled:
“Offset – Non-taxable under IRC §280A(g)”

🎯 This keeps your return balanced and avoids triggering an audit.

✅ No, if under 14 days ❗ Maybe, if your business has a policy to issue 1099s for all payments

If one is issued, follow the offset method above.

IRS Publication 527 – Residential Rental Property Covers the Augusta Rule’s 14-day rule and expense limitations 📎 IRS Pub 527
IRS Topic No. 415 – Renting Residential Property Short summary of the “less than 15 days” rule 📎 Topic 415 – IRS.gov

Topic

Rule

Schedule A

✅ Deduct mortgage interest & property taxes

Schedule E

🚫 Don’t report ≤14-day rent, unless 1099 is issued

1099-MISC

⚠️ Offset income on Schedule E if received

Pub 527

✅ Explains Augusta Rule tax-free treatment

Last updated 3 months ago