Calculators › Augusta rule (home rental to your business)

Augusta rule (home rental to your business)

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Days your business rents your home Daily rate (what a comparable venue charges) Your combined federal and state tax rate on business income

How it works

Under §280A(g), rent for 14 days or fewer a year isn't taxable to the homeowner, while the business deducts it. It has to be a real business use — board meetings, planning days, client events — with minutes, an invoice, payment from the business account, and a rate you can back with local quotes. Pass-through and S-corp owners save their marginal rate on the rent; the IRS looks hard at inflated rates.