The Augusta Rule only works if you can prove it.
Rent your home to your business for 14 days or fewer a year and that rent can be tax-free to you. The paperwork is the whole game.
Source: IRC §280A(g)
The Augusta Rule, explained in plain English
The Augusta Rule (IRC §280A(g)) is a real part of the tax code about renting your home for a short time each year, not a hack. When your own business is the renter, it only holds up with a real business purpose, a fair rate and records made at the time. Ask your CPA first.
Questions to ask your CPA
- Does my entity type make this a fit for me?
- How should we set and document a fair rental rate?
- What records do you want from me, and when?
These are my opinions, not gospel. Take this to a CPA who cares about you.
Education, not tax or legal advice. Talk with a CPA about your own situation.