The Boring Invstr - Your Simple, Digestible Weekly Investing & Finance Newsletter

3 General News Headlines:

1. The Kentucky Supreme Court heard arguments on whether to temporarily pause the state's abortion ban.

2. At least 25 people died as tornadoes battered the South and Midwest

3. The House of Representatives passed a GOP-led bill titled the "Protection of Women and Girls in Sports Act" that would ban transgender athletes from women's and girls' sports at federally funded schools. The bill is unlikely to advance further since the Democratic-led Senate will not support it and the White House said President Biden would veto it.

3 General Finance News Headlines:

1. House Minority Leader Kevin McCarthy said that the House of Representatives will pass a GOP-led bill to increase the nation's debt ceiling by $1.5 trillion this week, in order to stave off a US payments default until March 31, 2024. The bill is expected to face opposition in the Senate, where Democrats hold a slim majority.

2. Earnings season is off to the best start in a decade after banks kicked off earnings season better than expected this past week. Many analysts were warning of one of the worst seasons in years.

3. This week, both Meta and Lyft announced their intent to lay off workers. Meta plans to lay off 10,000 workers over the next coming months. After only a few days as Lyft’s CEO, David Risher plans to lay off a “significant number” of workers over the next couple of weeks, with the company cutting 30% of its staff in an attempt to cut costs.

Welcome Back to The Fourth Edition of The Boring Invstr!

To those of you who have read every edition of The Boring Invstr and to those reading The Boring Invstr for the first time I appreciate you!

This week's edition will be on the shorter side, but one of the most practical and useful for making a couple hundred or thousand extra tax-free dollars every year!

I am sure most of you are familiar with Augusta National Golf Course and the annual Master's Tournament held in Augusta, Georgia. Before the 1970s, many Augusta homeowners saw an opportunity to charge high rent with the influx of players, media members, and patrons in the area. Then in the 1970s, Augusta residents lobbied for a new tax code that would protect them in renting their houses during this week of the year. The tax code passed and since has benefited not just the residents of Augusta, but all U.S. residents.

The Augusta Rule, or IRS Code Section 280A, states that a homeowner can rent their home for up to 14 days in a year and use the rental income as a tax deduction (tax-free income). Business owners can also qualify by renting out their personal residences to their businesses. You don’t have to “deduct” anything from your actual yearly or quarterly taxes, as you legally don’t have to report your rental income.

Here’s how it applies to you…

• You must own a house in the US.

• That house cannot be your primary place of business.

• Rent for up to 14 days out of the year.

• Although rental income does not need to be reported, any expenses that occur while renting the property are not deductible.

• It is essential for you to record your rental income and expenses (Proof of rental income)

• Must charge a reasonable rent based on the market, time of year, and demand.

• If you rent your home to your business, you must use it for business purposes (Have some documentation that it is used for business).

• Always consult a tax professional if you have any questions or are uncomfortable.

As always this is purely my opinion, results will vary, and I encourage you to do your own research and consult a professional before you put your money anywhere.