How It Works
Under IRC §280A, you can rent your personal residence to your business for up to 14 days per year. The rental income is completely tax-free to you, while your business gets a legitimate deduction for the rental expense. The strategy is named after Augusta, Georgia, where homeowners near the Masters golf tournament have long rented their homes for premium rates during the event.
Who Qualifies
- Business owners who can justify business use of their home
- Those who host legitimate business meetings or events
- S-Corp and C-Corp owners
- LLC members with pass-through taxation
Key Requirements
- Rent must be at fair market value (get a comparable analysis)
- Must be for legitimate business purpose
- Limited to 14 days per year
- Must document each rental day and business purpose
Documentation Needed
Rental agreement between you and your business, fair market value documentation (comparable rentals in your area), calendar of rental days, documentation of business purpose for each rental (meeting minutes, attendee lists, agendas).