The Augusta Rule · IRS Section 280A
How the Augusta Rule works
A rule that has been in the tax code for decades, explained in plain language.
Your business
Rents your home for a real meeting and pays you the going local rate.
Writes it off as an expense
You
Take the rent into your personal account like any other landlord would.
Never report it as income
Up to 14 days a year. Both halves of this sit in IRS Section 280A(g). What decides whether it holds up is the paperwork behind it.
How a business owner uses it
As a business owner you already hold meetings. Just hold some at home and take the tax free income. Team meetings, planning sessions, client events, annual reviews, and board meetings are all eligible examples.
The business pays you rent for the use of your home. That rent is a normal deductible business expense, so it reduces your business income and lowers your business taxes.
On your personal 1040, up to 14 days of business rental income is not included at all in your personal income taxes. It is 100 percent tax free.
What the IRS expects
The rent has to be a fair market rate. But what is that? Do not guess, and do not call every hotel in your area. We generate the reports for you with audit resistant proof of the hourly rate for your home and your neighborhood.
You also need good documentation and a lease contract. We provide the template lease agreement in all 50 states, so there is no third party site and no extra work needed. We walk you through a simple interview built to save your time and document each event. With good meeting notes, an entire year of event interviews can take 15 minutes or less.
That documentation is the part most people get wrong, and it is the part we make simple for you.
What we deliver
We provide the comps for your home with a low, high, and average value around your home. We provide an easy interview that documents all your events in a single PDF. We generate the lease agreement between you and your business.
You get a clean set of documents to hand your accountant, and it includes everything. The comps, the events noted, and the lease agreement. There is no guessing about how you reached the final dollar amount.
We help you document everything the IRS expects, which lowers your chance of an audit through a provable trail of documentation.
What used to take hours takes a few minutes. Save time, lower your audit risk, and take this valuable tax break.