How-to / IRC § 280A(g)
How to Implement the Augusta Rule
Up to 14 days of rental income from your personal residence is fully excluded from federal tax — and not even reportable. Here's the six-step implementation playbook.
Reviewed by
Financial Freedom Librarian
Fiduciary Research Editor
J.D., LL.M. (Taxation) — supervising fiduciary review
Last updated
View all sources →Step 1
Establish a legitimate business purpose
Document a real business or trust governance meeting that needs a venue — quarterly board meetings, strategic planning sessions, or trustee deliberations qualify.
Verify this step
Step 2
Determine fair-market rental rate
Collect 3+ comparable quotes from local hotels, conference centers, or Peerspace listings. Document the rate per day with screenshots and dates.
Verify this step
Step 3
Execute a written rental agreement
Draft a short rental contract between the business/trust entity and the homeowner specifying date, rate, square footage, and purpose.
Verify this step
Step 4
Hold the meeting and document attendance
Conduct the meeting at the residence. Capture an agenda, attendee list, minutes, and timestamped photos. Stay under 14 rental days per calendar year.
Verify this step
Step 5
Pay rent from the entity to the homeowner
Issue payment from the business/trust bank account to the homeowner. The entity deducts under § 162; the homeowner excludes under § 280A(g) — no Schedule E reporting required.
Verify this step
Step 6
Archive evidence in your audit-defense vault
Store the rental agreement, comparable quotes, minutes, and payment records together. Anchor the bundle on Stellar for cryptographic timestamping.
Verify this step
Statutes & authorities
- IRC § 280A(g) — Dwelling unit used as residence
- IRC § 162 — Trade or business expenses
- IRS Publication 527 — Residential Rental Property