The Augusta Rule: rent your primary residence to your own business up to 14 days/yr at market rate — 100% deductible to biz, tax-free to you.
IRC §280A(g) — the 'Augusta Rule' — excludes from income rental payments received when a personal residence is rented for FEWER than 15 days per year. A business owner rents their home to their business (board meetings, corporate retreats, client events) at documented market rate. Business deducts the rent (up to $2K–$5K/day in high-comp cities), owner receives it tax-free. Requires (1) legitimate business purpose, (2) market-rate rent (get comps), (3) written rental agreement, (4) documented meeting agendas/attendees.
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Short-Term Rentals (avg stay ≤7 days) are NOT rental activities under §469 — material participation alone unlocks non-passive losses.
Cost seg study reclassifies 20–35% of STR building basis to 5/7/15-yr property — 60% bonus (2024) = massive year-1 loss.
Keep personal use under 14 days OR 10% of rental days to preserve STR loss deductibility; over triggers vacation-home rules.
STRs providing hotel-like services (daily cleaning, meals, transport) move to Schedule C — SE tax + QBI eligible.
Airbnb/VRBO often collect + remit TOT for you — exclude from gross rental income; save on state income tax base.
Lease a unit long-term ($2K/mo), furnish, list as STR for $5K/mo — no property purchase required.
Combine §280A(g) 14-day rental + STR cost seg + material participation for cascade of tax benefits on same property.
Exchange appreciated LTR into an STR — defer cap gains, immediately unlock STR loophole + cost seg on new basis.