10/19/2026
What if your business could pay you rent for using your own home, and that rental income could be tax-free?
That's the idea behind the Augusta Rule, and it's one of the tax strategies business owners should know about before the year ends.
Under Section 280A(g), you may be able to rent out your personal residence for up to 14 days per year without reporting that rental income as taxable income.
Here's where business owners may find an opportunity: your company could rent your home for legitimate business meetings, planning sessions, or qualifying events.
But there's a catch. You can't simply pick an inflated rental price and call it a deduction. The rental rate needs to be reasonable, the business purpose must be legitimate, and you need documentation to support the arrangement. Expenses attributable to the tax-exempt rental income generally aren't deductible either.
The opportunity is real, but the details matter. Get the structure wrong, and a strategy intended to save you money could create tax problems instead.
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