Augusta Rule (§280A(g)) — Renting Your Home to Your Business
Rent your personal residence to your business for up to 14 days/yr. Business deducts the rent; you receive it tax-free.
Origin
Named for Augusta, GA homeowners who rent to Masters Tournament attendees. IRC §280A(g) lets ANY homeowner rent their personal residence for up to 14 days a year without recognizing the income.
How owners use it
Hold legitimate business meetings (board meetings, strategy retreats, training sessions) at your home. Document an agenda, attendees, and minutes. The business pays you fair-market rent for the day — the business deducts it as a meeting expense; you exclude it from income.
Typical numbers
Comparable single-day venue rentals in your area set the cap. $1,500–$3,000/day is common; 10–14 meetings/yr can yield $15k–$40k of tax-free income.
Watch out for
- •Must be a real meeting with documentation — not a sham.
- •Rate must match local comparable venues; keep quotes on file.
- •More than 14 days/yr blows the entire exclusion.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.