Augusta Rule (IRC 280A) Fair-Rent Calculator (2026)
IRC Section 280A(g) — the Augusta Rule — lets you rent your personal residence to your business for up to 14 days/year and exclude the rental income from your personal tax return entirely. Fair rent documentation is the audit defense.
| Rental days | — |
| Daily fair rent | — |
| Total rental income (tax-free to you) | — |
| Business deduction value | — |
| Personal tax saved (would have been taxable income) | — |
| Total combined savings | — |
IRC Section 280A(g) — known as the Augusta Rule because it originated to protect Masters Tournament homeowners renting to corporate guests — lets you rent your personal residence to your own business for up to 14 days per year and exclude the rental income from your personal tax return entirely. The business deducts the rent; you receive it tax-free.
The Documentation That Wins Audits
The IRS challenges Augusta Rule deductions when daily rates look above-market or business purpose is thin. Build the audit defense file before the meeting. (1) Three written comparable quotes for similar venues (hotel conference room, event center, executive meeting space) on the same dates and area — these justify your daily rate. (2) Signed written rental agreement between business and you personally, with dates, rate, and purpose. (3) Meeting minutes documenting actual business conducted — board meeting, strategy session, leadership offsite. (4) 1099-MISC issued by the business for the total rent. (5) Report on Schedule E and back out under 280A(g).
Common Mistakes That Trigger Audits
(1) Above-market daily rate with no comparable documentation — $5,000/day for a suburban home looks fraudulent. Most legitimate uses run $500-$2,500/day depending on home size and location. (2) No real business activity — renting to your own one-person LLC for a 'planning meeting' with no agenda and no meeting minutes will not survive scrutiny. (3) Exceeding 14 days — the rule is binary; day 15 makes ALL the rental income taxable. (4) Personal residence requirement — must be a dwelling you use personally for more than 14 days or 10% of rental days in the year. Properly executed, the Augusta Rule is one of the cleanest tax strategies in the code — but execute it correctly or skip it.
Last updated May 2026. Sources: IRS IRC 280A.