The Augusta Rule only works if you can prove it.

Under IRC §280A(g), if you rent your home for fewer than 15 days in a year, that rental income isn't included in your income. When your business is the renter, the business side needs a real purpose, a fair market rate, and records made at the time: agendas, minutes, invoices and payment.

Why it matters

This rule gets passed around on social media as a 'hack.' It's real law, but it rewards documentation, not cleverness. Weak records turn a legitimate deduction into an argument you can lose.

Example

An owner holds four quarterly planning meetings at home, gets two written quotes for comparable meeting space, invoices the business, pays from the business account, and keeps the agendas. That's a file that holds up.

Take this to your CPA

1. Does my entity type make this a fit for me?
2. How should we set and document a fair rental rate?
3. What records do you want from me, and when?

Sources

• IRC §280A(g)
• IRS Topic No. 415, Renting residential and vacation property

These are my opinions, not gospel. Take this to a CPA who cares about you.