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Lesson · Business tax

Rent your home to your business. Tax-free.

The Augusta Rule lets your business rent your home up to 14 days a year — a deduction for the business, and not a dollar of taxable income to you. Here's how, in 60 seconds.

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14 days
The most you can rent it, tax-free, per year
$21,000
Example deduction at $1,500/day × 14 days
$0
Taxable to you on that rental income

How it works

Three moves that make it real

The Augusta Rule is simple, but the IRS wants it done for a genuine business purpose at a fair rate — not as a paper trick.

1
Your business rents your homeFor a real business purpose — a board meeting, a planning retreat, a client event.
2
14 rental days or fewer per yearCross 14 days and the whole exclusion is gone. Track them.
3
Business deducts, you excludeThe business writes off the rent; you report none of it as income.
Fair daily rate$1,500
Days rented14
Business deduction$21,000
Taxable to you$0

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The Augusta Rule field guide — one page

The rules, the documentation checklist, the worked number, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

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Field guide · PDF

The Augusta Rule

Rules + documentation checklist + the law

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What you must document

No paperwork, no deduction

This is where audits are won or lost. Keep all of it for every rental day.

✓
Written rental agreementBetween you and your business, signed and dated.
✓
Fair-rate compsPrinted quotes from comparable local venues to justify the rate.
✓
Proof of a real meetingAgenda, minutes, and a board resolution authorizing the rental.
✓
Invoice + payment on timeAn invoice from you, paid by the business by check or transfer — not late.

The law behind it

Primary sources

Verify against the source before you rely on it. This is education, not legal or tax advice.

26 U.S.C. § 280A(g) — Dwelling rented fewer than 15 days: income excluded from your gross incomelaw.cornell.edu/uscode/text/26/280A
26 U.S.C. § 162(a) — The business's deduction for the rent as an ordinary and necessary expenselaw.cornell.edu/uscode/text/26/162
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