Frequently Asked Questions

 

You don’t need to be a tax expert to understand this. These answers keep it simple.

  • General
  • Done-For-You Service
  • Home Rental
  • Qualifications
  • The App

Why is it called the Augusta Rule?

The nickname comes from Augusta, Georgia, where residents historically rented out their homes for the Masters Tournament, often for a week or two at premium rates. They lobbied Congress in the 1970s to create a short-term rental exception — and Section 280A(g) was born.

What is the Augusta Rule and how does it relate to IRS tax savings?

The Augusta Rule, also known as IRS Section 280A(g), is a tax provision that enables you to make tax-free rental income for up to 14 days each year. This powerful tax provision means that you can rent out your home for 14 days or less without any tax obligations on your rental income. It also allows many businesses to rent the home of the business owner, which creates a tax deduction in the business and tax-free income for the owner without renting to strangers.

How do I actually benefit from using the Rule?

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

Is there an Augusta Rule calculator?

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.

What is TheAugustaRule.com’s “Free-Money” Plan?

It is a Done-For-You, software-backed service, that makes it possible for business owners to leverage the Augusta Rule’s exemption with the least distraction from their business while making the greatest return.

What features are included in “Free Money” Plan?

Features include a free Strategy Call, custom rental valuations for each qualifying residence, white-glove team member onboarding, qualifying events identified and scheduled for you, auto-generated contracts and invoicing, secure storage, an education library, responsive email support, and an end-of-year tax packet delivered to your CPA with filing instructions.

How much money will this put in my pocket and what will it cost me?

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.

What if I sign up for the “Free Money” Plan and my Tax Pro doesn’t want to work with it?

Sadly, this can happen. We ask for your Tax Pro’s info during sign-up so we can contact them and find out early on if they will support your filing using The Augusta Rule or not. If not, you will have two options:

  1. Continue with your current Tax Pro and pay more tax than you need to. The Augusta Rule is not rocket science and is well supported via our educational videos, which include citations to the relevant law. If your current Tax Pro is this conservative… who knows what else they are missing on your behalf?
  2. Switch to a Tax Pro who will work with The Augusta Rule (and will probably be better informed on other tax matters as well).

If you decide to go with option 1, we will refund your deposit. If you decide to go with option 2, we are happy to refer you to a supporting Tax Pro.

What makes your service different from a CPA?

Most CPAs don’t implement this rule — they just file. We handle the setup, valuation, documentation, and tracking so you can actually use the strategy without making mistakes. Then we pass all the documentation to your CPA for them to incorporate into your tax filing.

Is there a limit to how much you can help me deduct?

Only the limitation of qualifying residences, the rents they can justify, and the amount of qualifying meetings you can hold. We help you capture the full, legal limit based on your rental value and number of qualified days. If you have multiple homes or entities, we help you layer those legally.

Can I use AI for the Augusta Rule?

AI cannot produce accurate home valuations, the foundation of how you earn and save using The Augusta Rule. Our software-backed service delivers custom valuations for your residence(s), unlimited coaching, and accountability to ensure every event is properly booked and fully compliant. You also gain peace of mind with our audit protection guarantee. AI cannot offer these essential elements.

How many residences may the Augusta Rule apply to?

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.

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.

What qualifies as a dwelling?

Under IRS Section 280A(g), a dwelling refers to any property used as a residence. 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.

Does the rental value of my home change depending on the purpose of the meeting?

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

Does the rental value of my home change depending on the day, season, or year?

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.

How do you calculate the suggested rental value?

We compare property data from your neighborhood, market trends, and factors such as location, amenities, timing, and property size before you join us on your Strategy Call. We discuss our findings with you and provide a custom rental value based on data and your specific uses and goals.

What if I disagree with the suggested rate?

We welcome a discussion. As long as the rate is reasonably aligned with data, it may be possible for us to use it and apply our audit defense guarantee to it. We reserve the right to decide.

Can I use outdoor spaces like my yard or pool for events?

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

Can I use my vacation home for Augusta Rule meetings?

Yes, as long as you don’t rent that home to others for more than 14 days total throughout the year.

Can I use the Augusta Rule to rent my home to someone other than my business?

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.

Who can use the Augusta Rule?

Eligible: Corporations (whether taxed as S-Corporations or, C-Corporations), Single Member LLCs (only if taxed as S or C Corporations), Multi-Member LLCs (non-spousal) or Partnerships with a distinct Employer Identification Number

Gray: LLCs and Partnerships where the sole Members are spouses. We recommend that your meetings need to include at least 3 total business associates in order to be defensible and we count combined spouses as 1.

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)

I’m a sole proprietor or single-member LLC. Can I still use the Augusta Rule?

The tax code gets murky here. 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 gray area, 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.

Can I have more than 1 business on the same account using the “Free Money” Plan?

COMING SOON. Yes. Every account will allow 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.

Do I need to have three attendees every time?

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.

Can I use this rule if I’m just getting started with my business?

Yes, as long as your business is properly structured and active, and the events you host at your home have real business purposes. That said, it won’t provide much value until you have profit, so focus on that first.

What if my company has multiple partners? Can I still use the Augusta Rule?

Yes 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.

Contact us to learn more.

Can I apply the Rule retroactively?

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.

Is The Augusta Rule™ App compliant with IRS regulations?

Yes, The App is fully 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.

How will I know what to do and when?

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.

Can I record rental events after I have them?

It’s better than ‘nothing’. However, the longer one waits to document events, the less defensible they are if challenged – and any audit protection included with the “Free Money” Plan will be voided. The best practice, by far, for all IRS-related documentation is that it be contemporaneously created & recorded.

What does the app do if I miss a meeting or don’t complete documentation?

The app will alert you with reminders. If you miss too many steps, we’ll flag that date as incomplete and it won’t be included in your deduction total — ensuring compliance.

Can I access reports for my CPA from the app?

Yes. At year-end (or any time upon request and payment), you can export a complete audit-ready report with valuation support, invoices, and event logs.