The nickname comes from Augusta, Georgia, where residents historically rented out their homes for the Masters Tournament held in Augusta, often for a week or two at premium rates.

The Augusta Rule is a provision in the U.S. tax code Section 280A(g) that lets homeowners rent their residence for up to 14 days per year without paying tax on that income.

The Augusta Rule refers to IRS Section 280A(g), which allows a homeowner to rent out their personal residence for up to 14 days per year and receive that rental income tax-free.

We describe this in two ways to clarify how it is commonly used:

Augusta Rule 1.0

This is the traditional use. A homeowner rents their home to a third party for 14 days or less and receives tax-free rental income. There is no business deduction involved.

Augusta Rule 2.0

This is where IRS tax savings enter the picture for business owners.

Instead of renting to strangers, your business rents your residence for legitimate business meetings and events. When structured properly:

• The business deducts the rental expense
• You receive the rent personally, tax-free (under the 14-day rule)

There is nothing in the tax code that labels these as 1.0 or 2.0. That is simply our way of distinguishing between the traditional use of the rule and the strategic implementation for business owners. Learn More.

Your business gets a deduction. You, the homeowner, get the income tax-free. If properly implemented, it’s a clean internal transfer of funds that reduces your tax burden without creating a personal tax liability.

Yes! The Augusta Rule™ Calculator shows how much your business can legally pay you—renting your own home for business activities — while also deducting the full amount as a business expense.

You’ll see your total tax-free income (tax deduction) and your estimated tax savings.

It depends on your home’s fair market rental value, your number of qualifying meeting days (up to 14), and your tax bracket.

To get a personalized estimate of your potential business deduction and tax savings, use The Augusta Rule™ Calculator.

We’ve published a single reference that defines key Section 280A(g) terms and outlines the business and meeting standards that support a compliant Augusta Rule deduction.

They can coexist, but you must keep them separate. If you claim a home office deduction, that space should be excluded from the areas rented to your business for Augusta Rule events. If you take the home office deduction, our software includes an Accountable Reimbursement Plan document for you.

The Augusta Rule is part of the federal tax code (IRS Section 280A(g)), so the primary benefit is at the federal level. Most states follow federal treatment, which means the deduction usually reduces state taxable income as well. However, state rules can vary, so you should confirm how your state handles it with your tax professional.

No. John Hyre, our co-founder and a tax attorney, has not seen evidence that properly using the Augusta Rule triggers audits. Audits typically happen when returns contain red flags or deductions lack solid documentation. When implemented correctly and documented well, the Augusta Rule is simply the use of a provision written directly into the tax code.

As of early 2026, no we have not.

It is a done-for-you, software-backed service that implements the Augusta Rule correctly.

The Augusta Rule requires substantial paperwork and documentation. We handle the compliance and approximately 90% of the administrative burden for you.

You book the event in our software, host it, and upload your event notes. We take care of the rest.

And if you are ever audited on your Augusta Rule implementation, we provide audit defense support.

Features include:

• Free Strategy Call
• Custom rental valuations for each qualifying residence
• White-glove onboarding
• Unlimited expert support to maximize every dollar
• Qualifying events identified and scheduled
• Auto-generated contracts and invoicing
• Secure storage
• Education library
• Responsive email support
• End-of-year tax packet delivered to your CPA with filing instructions
• If you get audited, our goal is to have a packet to the IRS agent the next day.

Learn More.

We don’t know until we do a custom analysis of your residence and determine how much it can rent for.

If you have a good guess, you can input it into the Savings Estimator, but the best way to find out is to schedule a Strategy Call. Here is our fee structure and an example of money in your pocket.

Our Fee:
You pay 8% of the Tax Deductions you save.
A $1000 deposit goes towards your 8% fee, due after your Strategy Call.

Example of money in your pocket and the cost:

• 14 days of renting your home at $3000/event = $42,000
• That’s $42k in personal income that is tax-free
• That’s a $42k business tax deduction
• Your fee is 8% of $42k which is $3,360 (This can also be deducted by your business)

Depending on your business type your total tax savings will vary.

This can happen. We contact your Tax Pro early to confirm support.

If they do not support it, you have two options:

1. Continue with your current Tax Pro and not implement the strategy. In that case, we refund your deposit.
2. Switch to a Tax Pro who supports the Augusta Rule. We can provide referrals.

If your CPA is interested but unsure, we will educate them.

Most CPAs file. They don’t implement it.

We handle setup, valuation, documentation, scheduling, tracking, and compliance. Then we pass organized documentation to your CPA for proper filing.

8% of deductions.

When you become a client, we collect a $1,000 deposit, which is credited toward our 8% fee on the deductions we help you create.

For example, if you book 14 events at a $3,500 rental rate, that totals $49,000 in deductions, and your total 8% fee would be $3,920.

The 8% fee is collected as each event is booked (Book an event – $3500 rental rate – $280 fee).

Yes. The primary limits are:

• The number of qualifying days (up to 14 per residence, per year)
• The defensible fair market rental value of each property
• The number of legitimate business meetings you can properly host

We help you capture the full legal amount supported by your properties, rental values, and qualified events.

If you own multiple residences or operate multiple entities, we structure those opportunities correctly and within the limits of the tax code.

You can try. AI cannot yet produce accurate home valuations, ensure proper compliance, or hold you accountable to the documentation standards the IRS expects.

That is why we use real professionals to research your comparables and support you in properly implementing the rule.

Our service provides:

• Custom fair market rental valuations
• Accountability and structured event planning
• Proper documentation and agreements
• Audit defense support

These elements are essential for compliant Augusta Rule implementation.

Our staff (including CPAs, IRS Enrolled Agents, Annual Filing Season Program (AFSP)) practitioners and if necessary, tax attorneys, will professionally represent you in an Audit, subject to your fulfilling your responsibilities. As set forth below we will:

• Assign a team member to manage your case. The team member (including any licensed professional) may be a 3rd party partner or contractor;
• Develop a strategy with you for responding to the 280A(g) portions of the Audit or Notice;
• Handle all communications, in any form, with the IRS or State regarding the 280A(g) portions of Your Audit or Notice; and
• Negotiate with the IRS or State regarding 280A(g) via the IRS Office of Appeals (or local equivalents).

Learn more in our Terms of Service.

Book a free strategy call with our team. During the call, we’ll review what your residence could rent for, explain how our done-for-you service works, discuss strategy for your use case, and answer any questions you may have.

You can apply the rule to unlimited residences. The IRS defines a residence as any dwelling with a bedroom, bathroom, and kitchen that you (or family members) overnight in for 14+ days during the year. Learn More.

Note: While boats and yachts may technically meet the criteria of a qualified dwelling, the IRS tends to flag these rentals. Based on case law and audit risk, we do not support using watercraft for Augusta Rule deductions.

Under IRS Section 280A(g), a dwelling refers to any property you can live in. According to IRS guidelines, this can include: a house, an apartment, a condominium, a mobile home, a mother-in-law suite, or similar property with basic living accommodations (sleeping space, toilet, cooking facilities).

Note: While boats and yachts may technically meet the criteria of a qualified dwelling, the IRS tends to flag these rentals. Based on case law and audit risk, we do not support using watercraft for Augusta Rule deductions.

No. You can be a renter and it’s still a residence.

Yes. Certain events, like true hollywood-level film shoots, can command higher market rates. But, be wise and document everything correctly (or have us do it for you).

It can. This largely depends on your market and use case. We aim to factor this into your custom valuation under the “Free Money” Plan whenever possible.

We analyze property data from your neighborhood, local market trends, and comparable commercial meeting spaces. We also factor in location, amenities, property size, timing, and how the space will actually be used for your business events.

Before your Strategy Call, we prepare a custom valuation for one residence based on real market data. We then walk you through our findings and explain how the value was determined.

Our valuations are based on fair market comparables, not short term rental searches. In most cases, they produce significantly higher valuations and stronger support than what you could find on AirBNB.

Yes, but document the business use carefully. Avoid any impression of personal recreation or entertainment, focus on business purpose, attendee list, and outcomes.

Yes, as long as you don’t rent that home to others for more than 14 days total throughout the year. Be sure to follow best business practices, limit anything seen as entertainment, and avoid having non-business participants at the home.

Technically yes, the Rule allows you to rent to any third party for up to 14 days tax-free. But our service is built specifically for business owners who want to rent their home to their own business. That’s what creates tax-free income and a business deduction. It’s the most efficient use of the rule, and exactly what our “Free Money” Plan is designed to support.

Best practice: Yes, when a 1099 is issued.
When your business rents your residence and issues you a 1099-MISC for the rental expense, the IRS receives a copy of that form. To properly match IRS records, the rental income should be reported on Schedule E of your Form 1040. You then claim an offsetting “other deductions” referencing IRC Section 280A(g), which results in zero taxable income from the rental.

Important distinction:
The Augusta Rule allows you to rent your residence [to anyone] for up to 14 days per year tax-free. If the rental is not reported to the IRS on a 1099, there is no income matching requirement, and the rental income does not need to be reported on your return.

Our service facilitates rentals between you and your business for up to 14 days, which means a 1099 is issued and proper reporting on personal taxes is required to maintain clean matching with IRS records.

In practice, rental comps are commonly derived from comparable homes using total home size along with bed and bath counts, which is how we generate valuations by default.

However, there are IRS cases where examiners focused on the square footage of the specific areas used for the business meeting. In those situations, the IRS reduced the deduction amount based on limited use of the space.

For that reason, we encourage using the entire residence whenever possible. If you choose to use only a portion of your home for Augusta Rule meetings, we can, upon request, adjust comps based on that footprint so the valuation reflects actual usage.

Note: Our audit defense applies using either method.

Eligible: C-Corporations, S-Corporations, LLC’s taxed as C or S Corp, and Partnerships (GP, LP, LLP, and Multi-member LLC)

Gray: LLCs and Partnerships where the sole Members are spouses. [For the IRS this is bad optics. We can defend it, and we might win, but the IRS gives it the stink eye.]

Not Eligible: Sole proprietors, Single-Member LLCs (unless the SMLLC is taxed as a C-Corporation or S-Corporation, in which case it is eligible)

No. The Augusta Rule requires a rental between two separate entities – and if you’re a sole prop or single-member LLC, the IRS may see you and your business as the same person. Because of that, we don’t offer our service to those business types. We only work with entities that clearly separate the homeowner from the business – like S Corps, C Corps, Multi-Member LLCs and Partnerships.

Yes. Your account on our software allows you to add unlimited business. The limiting factor for Augusta Rule deductions is the number of residences, not the number of businesses. Each residence can be rented for up to 14 days per year.

Yes. Three in-person attendees (spouse business owners count as 1) is the minimum we recommend for the business event to qualify. It is evidence that you held a substantive meeting, not just a formality.

Yes, but there are important requirements.

• You need a minimum of three attendees, and spouses count as one attendee.
• Only adult children who are legitimately involved in the business may be counted as attendees.
• Minor children do not count as attendees.

As always, the meeting must have a real business purpose and proper documentation.

No. You do not need to rent a separate space to host a purely virtual event. For example, you would not rent a hotel conference room just to sit alone and run a Zoom meeting. The business purpose for renting one’s house for this kind of activity is not strong.

The Augusta Rule requires a legitimate, in-person business gathering. Renting your home solely for a virtual meeting is not defensible.

Yes, as long as your business is active and properly structured.

However, the Augusta Rule creates meaningful value after your business is profitable. If you are early in your journey, focus first on generating consistent income.

Making money comes first. Saving taxes comes second.

You can use the Augusta Rule, but with the use of a resolution. A resolution is essentially a formal written agreement, adopted by the company (partners, members, or board), that documents:

• Approval of the rental arrangement – The business agrees it will rent a specific property (owned by a partner, member, or shareholder) for business use.
• Business purpose – The resolution should outline why the rental is necessary (e.g., offsite strategy meeting, annual planning retreat, client training).
• Rental terms – The number of days per year (must be 14 or fewer to qualify), fair market rental rate, and total payment authorized.
• Authorization – Signatures of partners, members, or board members showing consent to the arrangement.

You only need to create one per year.

Contact us to learn more.

The simple answer is No. The Augusta Rule has to be applied the way a real business would operate. A legitimate company pays rent for a space before using it, or at the latest, within 30 days after the event. To stay compliant, we follow that same standard. When onboarding with us, any events you’ve had within the last 30 days can be added to your account. 

Yes, but the central purpose of the meeting can’t be lunch (unless it’s a company party for your W-2s). A short meal in between substantive business discussion is fine.

You do not need to create a formal agenda. However, you are required to add meeting notes describing what took place. These notes should be completed soon after the event while the details are still fresh. Meeting notes are required for the event to qualify for our Audit Defense.

Yes. Meetings with clients or customers are perfectly acceptable. Just make sure the event has a clear business purpose and avoid activities that could be considered entertainment.

Yes, our software is compliant with IRS regulations under section 280A(g) of the IRS code. We stay updated with the latest tax regulations and make necessary adjustments to our platform to ensure compliance and accuracy.

During onboarding we will walk you through what initially needs to be setup and how to book events. You will receive real-time notifications on our platform as to important events, reminders, and tax filing deadlines. Whenever there is a new notification, the notification count will be highlighted on the bell icon, ensuring you never miss any crucial information. You may also opt-in to receive email notifications.

No. With one exception: during onboarding, you may add qualifying events that occurred within the previous 30 days.

All other events must be scheduled in advance. After the event takes place, you have 7 days to upload your meeting notes, files, photos, and related documentation.

Proper timing and contemporaneous documentation are critical for compliance.

When you book an event, 90% of the documentation that is needed will be complete.

After the event, you have 7 days to upload your meeting notes, photos, and any supporting documentation.

If that final 10% is not completed within the required timeframe, audit defense support will not apply to that specific event.

Our software will send you notifications to remind you to complete your event.

Yes. At year-end, you can export a complete audit-ready report with valuation support, invoices, and event logs, etc.

We offer Partnerships for Tax Professionals and Financial Strategists. Start by booking a quick 15 minute partnership call with us where we walk through the details. You can earn referral fees by introducing business owner clients or other tax professionals to our service. Our commission structure is outlined in the answer below.

Tax Professionals

• Refer other Tax Professionals – 5% of TAR fees paid by those Tax Pros clients. Example
• Clients you file for that use our service – 10% of TAR fees paid by your clients. Example

Financial Strategists

• Clients you serve that use our service – 5% of TAR fees paid by your clients. Example

We start with a video call to identify meetings and events they can schedule. Then we train them on our proprietary software system which collects and provides documentation needed for the Augusta Rule.

We loop their tax professional in immediately. Our team gets the client’s tax packet on the auditor’s desk within 24 hours. If the client meets our defensibility criteria, we provide support during the audit for the Augusta Rule portion of the return.

We provide:

• Free Strategy Call
• Custom rental valuations for each qualifying residence
• White-glove onboarding
• Unlimited expert support to maximize every dollar
• Qualifying events identified and scheduled
• Auto-generated contracts and invoicing
• Secure storage
• Education library
• Responsive email support
• End-of-year tax packet delivered to your CPA with filing instructions
• If you get audited, our goal is to have a packet to the IRS agent the next day.

Start by booking a 15-min Partner Call. We’ll learn about the types of clients you serve and discuss how we may be able to help them. Afterward, we’ll provide you with a custom referral link that you can send to your clients so we can meet with them directly.

For Tax Professionals, we have a co-branded solution coming soon. Stay tuned. If you would like early access, sign up here.

CPAs can file Augusta Rule deductions, but most do not have the time to help clients maintain the documentation required throughout the year. That is where we come in. Our team provides expert coaching and support, clear documentation guidelines, and a system that handles as much of the administrative work as possible. We take care of what we can and coach your clients through the parts they need to handle themselves.

We do our best to remind clients to do their part, such as logging meetings contemporaneously and keeping good notes. Clients who fall behind receive additional reminders from us. However, if they fail to maintain their documentation, they will not receive audit support from us for those events.

We work directly with your client and their team to document their events. However, if your client prefers that we work through you and you have the bandwidth, we are happy to do that as well.

Yes, if they are diligent about it. We are here to help them make the most of the Augusta Rule, no matter how much time is left in the year.

If you like reading tax code and case law the way our co-founder John does, you can explore the IRS provisions, court cases, and supporting guidance behind the Augusta Rule here. We’ve gathered the key legal sources that support the strategy so you can review them yourself.