Renting Your Home Fewer Than 15 Days — IRC Section 280A(g) (the "Augusta Rule")

Source [10] The business-meeting strategy — and its documentation burden

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“Minimum file documentation for clients using this strategy: - A written rental agreement between owner and entity. - **Fair-rental-value evidence** gathered contemporaneously — quotes for comparable meeting space (hotels, event rooms) in the same market. - A genuine business purpose for each rental day: agenda, attendees, and minutes or notes for every meeting. - Actual payment from the entity…”

- The property must be a dwelling unit the taxpayer uses as a residence during the year.

- Rented (actually rented, not merely listed) for **fewer than 15 days** in the year: the rent received is **not reported as income**, and rental deductions are **not allowed**. IRS Pub. 527 states the rule as "used as a home and rented fewer than 15 days."

- Mortgage interest and property taxes remain deductible under the normal itemized-deduction rules — the exclusion does not affect them.

- At 15 or more rental days, the exclusion is gone: **all** rental income is reportable and the vacation-home expense-allocation rules of sec. 280A apply instead.

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