The Complete Augusta Rule Documentation Checklist

Introduction

Proper documentation is the difference between a successful Augusta Rule implementation and a potential IRS headache. This checklist gives you everything you need to keep your records audit-proof and compliant.

Save this page. Refer to it every time you rent your home to your business.

Why Documentation Matters

The Augusta Rule itself is straightforward, but the IRS expects you to prove:

  1. The rental was legitimate — Real business activity occurred
  2. The rate was fair — You charged market value, not inflated prices
  3. The payment was real — Money actually changed hands
  4. You stayed under 14 days — You didn't exceed the annual limit

Without documentation, you have no defense if questioned. With proper records, the Augusta Rule is completely defensible.

Master Checklist: One-Time Setup

Complete these items once when you first implement the Augusta Rule:

Legal & Business Setup

  • Confirm your business is properly structured (S-Corp, C-Corp, LLC)
  • Consult with a tax professional about your specific situation if you are unsure

Fair Market Value Research

  • Research for comparable properties
  • Get quotes from local event venues
  • Document hotel conference room rates in your area
  • Save screenshots/printouts of comparable listings
  • Create a "Fair Market Value Justification" document

Rental Agreement

  • Create a formal rental agreement template
  • Include property address and description of space
  • Specify rental rate and payment terms
  • Include cancellation and liability terms
  • Have your tax professional review the agreement

Record-Keeping System

  • Create a dedicated folder (physical or digital) for Augusta Rule records
  • Set up a tracking spreadsheet for rental events
  • Establish a process for documenting each event
  • Decide how payments will be transferred (check, transfer, etc.)

What to Keep and For How Long

Keep for 7 Years (Minimum)

  • All rental agreements
  • Meeting minutes and event documentation
  • Fair market value analysis and comparables
  • Payment records (cancelled checks, bank statements)
  • Annual tracking spreadsheets

Keep Indefinitely

  • Original fair market value research
  • Your rental agreement template
  • Documentation methodology notes

Digital Storage Best Practices

  • Use cloud storage with automatic backup
  • Organize by year, then by event
  • Name files clearly (e.g., "2026-03-15-Board-Meeting-Minutes.pdf")
  • Keep both original and scanned copies of physical documents

Red Flags to Avoid

Documentation Red Flags

  • No written rental agreement
  • Vague or missing meeting agendas
  • No fair market value justification
  • Missing payment records
  • Inconsistent record-keeping

Rate Red Flags

  • Rates significantly higher than comparables
  • No research to justify rates
  • Rates that increase dramatically year-over-year
  • Different rates for similar events without explanation

Event Red Flags

  • "Meetings" with no agenda or minutes
  • Events that seem personal, not business
  • Exceeding 14 days (even by 1 day)

If You Get Audited

Having proper documentation means you're prepared. Here's what to do:

Stay Calm

The Augusta Rule is legitimate. With good records, you can defend it.

Gather Your Documentation

  • All rental agreements for the year in question
  • Meeting minutes and event documentation
  • Fair market value analysis
  • Payment records
  • Annual tracking spreadsheet

Work with Professionals

  • Engage your tax professional immediately
  • Consider hiring a tax attorney if needed
  • Don't communicate with the IRS without professional guidance

Respond Promptly

  • Meet all deadlines for responses
  • Provide requested documentation completely
  • Be professional and factual in all communications

Augusta Planner Makes This Easy

Tracking all of this manually can be tedious. Augusta Planner automates:

  • Rental Agreements — Generated for each event
  • Fair Market Value — Research done for your area
  • Event Documentation — Structured templates
  • Annual Tracking — Automatic day counting
  • 14-Day Limit Enforcement — System prevents scheduling beyond 14 days
  • Audit-Ready Reports — Everything organized if needed

Check Your Eligibility →

Quick Reference Card

Save or print this for quick reference:

Before Each Rental Event:

  1. Yes: Check days remaining (must be ≤14)
  2. Yes: Confirm business purpose
  3. Yes: Execute rental agreement
  4. Yes: Prepare agenda
  5. Yes: Process payment

After Each Rental Event:

  1. Yes: Document what happened
  2. Yes: File all records
  3. Yes: Update tracking spreadsheet

Annually:

  1. Yes: Verify total days ≤14
  2. Yes: Compile all documentation
  3. Yes: Review with tax professional
  4. Yes: Store records securely

Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult with a qualified tax professional before implementing any tax strategy.

Related Articles:
- What is the Augusta Rule? A Complete Guide
- Augusta Rule Myths and Facts
- Do You Qualify for the Augusta Rule?