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    Business Owner

    Augusta Rule (14-Day Rental)

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    intermediate · $50K - $100K

    Section 280A allows you to rent your home for up to 14 days per year without reporting the income.

    If your S-corp or business rents your home for meetings/events, you receive tax-free rental income while the business deducts it.

    Annual Limit

    14 days maximum rental period

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    Key takeaways

    • Section 280A lets you rent your home to your business for up to 14 days a year without reporting the rental income.
    • The business deducts the rent while you receive it tax-free, provided the rate is fair market and documented.
    • You need a written agreement, a documented business purpose, and comparable-rate research.
    • Any day the business uses the space counts toward the 14-day limit.

    Requirements

    • Own or rent a home you live in
    • Have a business that can legitimately rent space
    • Document fair market rental rate
    • Rent for 14 or fewer days per year

    How to Implement

    1. 1Research comparable rental rates for your area
    2. 2Create formal rental agreement with your business
    3. 3Document business purpose (meetings, retreats)
    4. 4Business pays you rent; business deducts, you don't report income

    The bottom line

    The Augusta Rule turns up to 14 days of legitimate business use of your home into tax-free income and a business deduction. It stands or falls on fair-market pricing and documentation.

    Frequently Asked Questions

    Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.
    Last reviewed: April 2026

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    Sources

    1. Internal Revenue Service, Rev. Proc. 2025-32

      2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)

    2. Internal Revenue Service, Notice 2025-67

      2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)

    3. Internal Revenue Service, Rev. Proc. 2025-19

      2026 HSA and HDHP inflation-adjusted limits

    Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.

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