Tax Playbook · Business owners
The Augusta Rule
Rent your home out for 14 days or fewer in a year and the rent is tax-free — you don't even report it. That's the 'Augusta Rule,' named for Masters-week rentals in Augusta, Georgia. Say your S-corp pays you $1,000 a day for 10 days of board meetings: the business deducts $10,000 and you keep all $10,000 tax-free. The rent must match real local prices, and you must keep records of every meeting.
Good for: S-corp and partnership owners who hold meetings at home.
Learn the basics
- IRS Publication 527: Residential Rental Property (PDF)
- IRS: Know the tax facts about renting out residential property
Recent articles & guides
- Augusta Rule Tax Strategy for Business Owners — Pantana CPA
- The Augusta Rule: Rent Your Home to Your Business Tax-Free — Myrick CPA
- Augusta Rule: Avoiding Audit Using §280A(g) — Fraim, Cawley & Company, CPAs
On this site
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.