Augusta Rule Calculator
Rent the home you own to your qualifying business for up to 14 days a year. The income is tax-free to you, and the business gets a deduction.
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Enter your email to reveal your tax-free amount and estimated savings.
- Sign a written rental agreement between you and your business
- Document a genuine business purpose for each rental day (planning meeting, retreat, client event)
- Keep comps or quotes showing your rate is a fair market rate
- Have the business pay you directly and keep the record
FAQs
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What is the Augusta Rule?
The Augusta Rule, IRC §280A(g) lets you rent your personal residence to your business for up to 14 days per year without reporting that rental income on your personal return. Your business deducts the expense; you don't recognize the income. It's named for Augusta, Georgia, where homeowners rented to Masters Tournament visitors.
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How many days can I use it?
Fourteen per calendar year, and the limit is strict. Rent for a fifteenth day and the entire year's rental income becomes reportable — not just the extra day.
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How do I determine a reasonable rental rate?
Base it on what a comparable local venue would charge for similar space and duration. Hotel meeting rooms, event spaces, and coworking day rates are reasonable benchmarks. Document how you arrived at the figure and keep those comparables on file — an unsupported rate is the weakest point in most Augusta Rule claims.
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What documentation should I keep?
Written meeting minutes or agendas showing genuine business purpose, a rental agreement between you and your business, your rate comparables, and evidence of actual payment from business to personal account. The meeting must legitimately occur and serve a real business purpose.
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Can I use the Augusta Rule as a sole proprietor?
No. It requires a separate business entity, an S corp, C corp, or partnership, to be the party paying rent. A sole proprietorship isn't legally distinct from you, so there's no arm's-length transaction.
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Does this work if I rent my home rather than own it?
The provision applies to a dwelling unit you use as a residence, which can include a rented one, but subletting terms in your lease may prohibit it. Check your lease first.
