Renting Your Home Fewer Than 15 Days — IRC Section 280A(g) (the "Augusta Rule")
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“A common planning use: the owner rents their home to their own business for occasional meetings or retreats (14 days or fewer per year). Done correctly, the business deducts reasonable rent as an ordinary and necessary expense under sec. 162 and the owner excludes the income under sec. 280A(g).”
- 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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