The Augusta Rule (IRC §280A(g)) lets a business owner rent their personal residence to their own business for up to 14 days per year. The rent is a deductible business expense and tax-free personal income. Most owners earning $80K+ in profit can save $3,000–$15,000 a year with one careful filing.
Enter your business profit, marginal tax rate, fair daily rental rate, and number of days. We'll compute your annual federal tax savings.
The IRS audits Augusta Rule claims. Six things you need on file:
The Augusta Rule is one of 60+ moves in our owner playbook. Solo 401(k), S-Corp comp, Accountable Plan, QBI, Cost Segregation, §83(b), Backdoor Roth — each with calculator + source link + implementation steps. We'll email you the PDF.
The Augusta Rule is one move. Your full picture has 5-15 that fit. A 15-minute Discovery Call walks through what applies to your business and family. Free. No pitch.
Book a free 15-min call →The Augusta Rule comes from a quirk in the tax code, codified at IRC §280A(g). It was originally written for homeowners in Augusta, Georgia who rented their houses out during The Masters tournament. The provision: if you rent your personal residence for fewer than 15 days in a year, you don't have to report the rental income at all. It's tax-free.
For business owners, the move is: rent your home to your own business for legitimate business purposes — board meetings, strategy retreats, annual planning sessions, off-site events. The business deducts the rent as an ordinary expense. You receive the rent as tax-free income. The same dollar gets a deduction on the business side and is excluded from income on the personal side.
The Augusta Rule is a structural foundation move. It pairs with:
The right combination depends on entity, profit level, family situation, and goals. That's what we walk through in the Discovery Call.
It depends on (a) your fair daily rental rate, (b) days rented up to 14, and (c) your marginal tax bracket. A typical $1,500/day rate × 12 days × 32% bracket = $5,760/yr. Use the calculator above with your actual numbers.
Compare to local meeting/event spaces with similar capacity. In a major metro for a 2,500-sq-ft home: typically $1,000-$3,000/day. In a smaller market: $500-$1,500/day. Get 3 hotel meeting-space quotes and 2 corporate-event-venue quotes; average them.
The Augusta Rule itself is not an audit flag. Excessive rates, missing documentation, or claiming on a sole-prop without S-Corp election are. Done correctly with the 6-step compliance checklist above, this is a clean strategy that survives audit.
The Augusta Rule and the home-office deduction are different rules and don't combine cleanly on the same days. Most owners take BOTH: home-office deduction year-round, Augusta Rule for 12-14 specific business event days.
Not directly — the IRS treats the business and you as the same taxpayer, so renting to yourself is a wash. The move is to elect S-Corp (Form 2553), then use Augusta. Most sole props at $80K+ profit save $15-25K/yr just from the S-Corp election, before adding Augusta on top.
Yes — §280A(g) applies to each "dwelling unit used as a residence." A primary home + a vacation home you regularly use can each be rented up to 14 days. That's potentially $40-60K/yr in tax-free rent for high-income owners with two homes.
Low when documented correctly. The IRS has audited Augusta Rule claims that lacked: market-rate documentation, business-purpose minutes, formal rental agreements, or bank-transfer evidence. With the 6-step compliance above, multiple tax-court cases (e.g., Sinopoli v. Commissioner, T.C. Memo 2023-105) have upheld correctly-structured Augusta claims.
The Augusta Rule is one of 60+ moves in the Good Deals owner workbook. Walk through what applies, see your annual + lifetime savings, and decide what to act on — all in 90 minutes with a CFA Charterholder + Investment Adviser.
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Good Deals is the planning workbook + advisory practice of Andrew Escher, CFA Charterholder + Investment Adviser Representative based in Austin, TX. Independent stack: Altruist for investment custody, BackNine for insurance placement, Good Deals for the planning layer that ties them together.
We work with solo professionals, agency owners, and business owners at $300K–$5M in revenue who want structural tax planning, an Investment Policy Statement, and a long-arc Roadmap — without the typical AUM-fee pitch.