How many days can I rent my home to my business under the Augusta Rule?

Up to 14 days per calendar year. At 15 days or more, all of the rental income becomes taxable.

Does the Augusta Rule work for a sole proprietorship?

No. A Schedule C sole proprietor renting from themselves gains nothing. The strategy requires a separate business entity, such as an S-corporation or partnership, paying rent to you as an individual.

How do I prove the rental rate is reasonable?

Document comparable local rates for meeting or event space on each rental date, keep a written rental agreement, meeting agendas and minutes, and pay by check or transfer from the business account.

Do I report Augusta Rule income on my tax return?

The business deducts the rent it paid. If you receive a 1099 for the rent, it is typically reported and then backed out with a corresponding adjustment referencing IRC Section 280A(g). Your CPA should handle this presentation.

The Augusta Rule: rent your home to your business, tax-free

Primary source: IRC §280A(g)

The short answer

Under IRC §280A(g) — nicknamed the Augusta Rule — you can rent your personal home to your business for up to 14 days per year. The business deducts the rent; you pay zero tax on the income. It requires a separate business entity, a market-rate rent you can document, and a legitimate business purpose for each rental day.

Who this works for — and who it doesn't

Good fit

S-corp or partnership owners who hold real meetings (board, planning, team offsites)
Homes with space that genuinely substitutes for rented meeting space
Owners already keeping clean books and minutes

Not a fit

Sole proprietors on Schedule C — renting from yourself does nothing
Anyone unwilling to document rates, agendas, and payments
People hoping to invent 14 "meetings" that never happened

How it works

Your business needs a real reason to rent space — a monthly planning meeting, quarterly board meeting, annual team retreat, client event.
Set a defensible market rate. Pull comparable quotes for local meeting or event space (hotels, coworking event rooms) for the same date and size, and save them.
Paper it like a real transaction. Written rental agreement, invoice from you to the business, payment from the business bank account, and meeting minutes or an agenda for each date.
Stay at 14 days or fewer. The 15th day makes all of the income taxable, not just the overage.
Report it correctly. The business deducts the rent. On your personal return, the income is excluded under §280A(g) — presentation matters, so have your preparer handle it.

A worked example

Maya owns a marketing agency taxed as an S-corp. She holds a monthly strategy meeting and two team offsites at her home — 14 rental days total. Comparable meeting space in her city runs $850 per day for her group size.

Maya's Augusta Rule mathRental days14
Documented market rate per day$850
Rent paid by S-corp (deductible)$11,900
Tax on the income to Maya$0
Approx. savings at a 32% marginal rate$3,808

Illustrative only — your rate, day count, and bracket will differ.

Common mistakes that draw IRS attention

The strategy fails on documentation, not on the law. The rule itself is straightforward; audits go badly when the rate is inflated, the meetings didn't happen, or the payments never actually moved.

Charging $3,000/day when a comparable room rents for $600
No agendas, no minutes, no attendees — just 14 invoices in December
Paying rent from a personal account, or never paying at all
Exceeding 14 days and assuming only the extra days are taxable (all of it becomes taxable)

Frequently asked questions

How many days can I rent my home to my business?

Up to 14 days per calendar year. At 15 or more days, all of the rental income becomes taxable — not just the amount over the limit.

Does this work for a sole proprietorship?

No. A Schedule C business and its owner are the same taxpayer, so renting from yourself accomplishes nothing. You need a separate entity — typically an S-corp or partnership — paying rent to you personally.

How do I prove my rental rate is reasonable?

Save comparable quotes for local meeting or event space for each rental date, keep a written rental agreement and meeting records, and pay by check or transfer from the business account.

Do I report the income on my return?

The business deducts the rent. If you're issued a 1099 for it, the income is typically reported and then backed out with an adjustment citing §280A(g). This is a presentation detail your CPA should handle.

Want this set up correctly — agreements, comps, and all?

The Augusta Rule is one line item in a full tax plan. In a free 30-minute consultation we'll tell you whether it fits your situation and what else you're leaving on the table.

Book a free consultation