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Augusta Rule Eligibility Checker
The Augusta Rule (IRC §280A(g)) lets a business owner rent their personal residence to their own business for up to 14 days per year, tax-free. But it does not work for every business structure. Answer three questions and get an honest answer, including when the honest answer is "this is not for you."
Who the Augusta Rule works for - and who it does not
The strategy works cleanly when a separate business entity pays rent to its owner: S-corporations, C-corporations, partnerships, and multi-member LLCs. The business deducts fair-market rent for legitimate meetings; the owner excludes up to 14 days of that rental income under IRC §280A(g).
It generally does not work for sole proprietors or single-member LLCs taxed as disregarded entities: you and your Schedule C business are the same taxpayer, so there is no real landlord-tenant transaction. Claiming it anyway invites disallowance and penalties. Two 2023 Tax Court cases show how these arrangements fail when the numbers are not independently supported: Sinopoli v. Commissioner and Jadhav v. Commissioner.
Eligibility is only the first gate. What decides an audit is the evidence file: documented fair-market comparables, a dated rental agreement, meeting minutes, and proof of payment. That file is what this platform helps you build.