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Augusta Rule Calculator

How much tax could renting your home to your business for up to 14 days save, and what should the meeting log show?

Your numbers

Estimated income tax saved

$6,660

Rent your business deducts$18,000
Rent you leave off your personal return$18,000
Combined marginal rate37%
Federal share of the savings$5,760
State share of the savings$900
Days left under the 14-day limit2
  • The business deducts the rent, and you leave it out of income under IRC 280A(g), only if the home is rented for 14 days or fewer in the year.
  • Support the daily rate with written quotes for similar meeting space near you.

Tip. Educational estimate with the assumptions listed on this page. Not tax, legal, or investment advice.

Assumptions

  • Your business is a separate entity, such as an S corp, C corp, or partnership, that can deduct rent paid to you.
  • The home is rented for 14 days or fewer in the year in total, to your business and anyone else.
  • Tax saved uses your marginal rates on the business income the rent reduces. Payroll tax and state rules on the exclusion are not modeled.
  • The daily rent is a fair market rate you can support with quotes.

Meeting log

Rows follow your meeting days. Add the date, purpose, and attendees for each meeting. Your entries stay in this browser tab only.

Explore the numbers

Examples

Load a scenario, then change one input at a time.

Example 1

Quarterly meetings

4 meetings at $1,200 a day, 24% federal, 5% state.

Estimated income tax saved

$1,392

Example 2

Monthly meetings

12 meetings at $1,500 a day, 32% federal, 5% state.

Estimated income tax saved

$6,660

Example 3

Full 14 days

14 days at $2,000 a day, 35% federal, 9.3% state.

Estimated income tax saved

$12,404

What this calculates

Free Augusta rule calculator. Enter fair daily rent, up to 14 meeting days and your tax rates to estimate the deduction and tax saved, then print a log.

How to use it

  1. Get two or three written quotes for a meeting room or event space near you and use a rate in that range.
  2. Enter the number of real business meetings you will hold at home. Stop at 14.
  3. Enter your top federal and state rates.
  4. Fill in the meeting log below for each date, then print it or download the CSV for your records.

Common mistakes

  • Using a sole proprietorship. A Schedule C business usually cannot rent your own home from you.
  • Picking a daily rate with no comparable quotes.
  • Holding social events and calling them meetings.
  • Renting the home to anyone for 15 days or more, which ends the exclusion for all of it.

Formula

Rent = daily fair market rent x meeting days (14 or fewer). Tax saved = rent x (federal rate + state rate).

How the Augusta rule works

What the rule says

The Augusta rule is the common name for IRC Section 280A(g). If you rent your home for fewer than 15 days in a year, you do not report the rent as income, and you do not deduct rental costs for those days. The IRS describes this in Topic 415 and Publication 527.

Business owners use it by having their company rent their home for real business meetings. The company deducts the rent as a business expense. You leave the same rent off your personal return. The money moves from the business to you without income tax on your side.

How this Augusta rule calculator figures the savings

The calculator multiplies your daily rent by the number of meeting days. That total is the deduction for the business. It then applies your marginal federal and state rates to show the tax that deduction may save. For example, $1,500 a day for 12 days is $18,000 of rent. At a 32% federal rate and a 5% state rate, the estimate is $6,660 of tax saved.

The tool stops at 14 days because the exclusion only applies when total rental days are 14 or fewer. Count every rental day in the year, not only the days your business uses.

Setting a fair market rent

The rent must be what an unrelated person would pay for similar space. Ask local hotels, coworking spaces, or event venues for a quote on a room that fits the same number of people with the same equipment. Save the quotes. A rate that is far above local options is the most common reason this strategy fails in an audit.

What to keep in your meeting log

For each day, write the date, the business purpose, who attended, and the rent charged. Keep an agenda and notes or minutes. Have the business pay you by check or transfer, and keep a simple rental agreement. Issue the paperwork your CPA recommends. The log on this page is a starting template. Print it or download it as a CSV and keep it with your tax file.

Who this fits

It fits owners of an S corp, C corp, or partnership who hold real meetings, such as planning sessions, board meetings, or team training. It does not fit a sole proprietor filing Schedule C in most cases, because you cannot rent your home to yourself. State rules can differ, so ask your CPA how your state treats the rent.

FAQ

What is the Augusta rule?

It is IRC Section 280A(g). If you rent your home for fewer than 15 days in a year, the rent is not taxable income to you. A business that rents the home for real meetings may deduct the rent.

How many days can I rent my home under the Augusta rule?

Up to 14 days in the tax year in total. On day 15 the exclusion no longer applies and normal rental rules take over.

How do I set the daily rent?

Use what an unrelated person would pay for similar meeting space near you. Get written quotes from hotels, coworking spaces, or venues and keep them with your records.

Can a sole proprietor use the Augusta rule?

Usually not in a useful way. A Schedule C business is you, so you cannot pay yourself rent. Most owners use it with an S corp, C corp, or partnership.

What records should I keep?

A rental agreement, quotes that support the rate, a meeting log with dates, purpose, and attendees, agendas or minutes, and proof the business paid you.

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