The business deduction that can save you thousands

✅Yes, but each owner must:

• Personally own a residence being rented to the business, and
• The business purpose (e.g., meetings) must reasonably occur at that specific property.

There's no ownership percentage requirement in §280A(g).

However, each rental must be legitimate, documented, and not duplicative (e.g., you can't claim the same meeting twice at two homes).

✅Yes, but with limits.

• The Augusta Rule applies to the personal use portion of your home.
• You cannot rent out the area already being used as a home office (since that's already partially treated as business use).
• You'd need to exclude the home office square footage from the calculation of fair rental value.

So, the rent should be based only on the personal-use portion used for the meeting or event.

✅Works for most pass-through and corporate entities, as long as there's a clear separation between taxpayer and entity:

• S-Corp
• C-Corp
• Partnership
• LLC taxed as any of the above

🚫Does NOT apply to:

• Sole proprietorships (Schedule C) — because you and the business are the same taxpayer.

The rule requires the rental to be between two separate tax entities.

If you file as a Schedule C, unfortunately you can't use the Augusta Rule. But that doesn't mean we can't help in some way. Reach out and we'll have one of our CPAs help you better understand the rule and your options.

Yes, the entire $250 fee is fully deductible as a business expense.

✅Yes, but with care.

• §280A(g) allows you to rent any personal residence, not just your primary.
• You can use it for different properties, as long as each rental is <15 days per property.
• You can't exceed 14 days at any single property in total (or you trigger rental activity reporting).

So if you own two homes, you could have up to 14 business-use rental days at each — potentially 28 total.

✅It can be outside the U.S., as long as it's a personal residence under the tax definition.

We can't say for sure why they didn't tell you, but our founder is a CPA and he didn't tell his clients either. He wrote about his reasons here and how that led to him creating Augusta Planner.

For an event to qualify it would need to be considered an "ordinary and necessary" business event under IRS standards (meaning: directly related to operating, managing, or promoting the business, and not lavish or primarily personal). We've put together a list of events by type that can qualify. Please note the list is not completely exhaustive as businesses are unique but this should give a general sense to help you think through events that could apply for your business.