The Augusta Rule (IRC §280A(g)) lets you rent your home to your company for up to 14 days a year. Your business deducts the rent as a legitimate expense, and you collect it completely tax-free. Set your meeting days, a fair-market daily rate, and your tax rate, and the savings update as you go.
The three numbers that drive the strategy. Keep the daily rate defensible and the days at or under 14, and this holds up cleanly.
From $0 of tax-free rent moved off your taxable income.
For an S-corp, the rent reduces the pass-through income on your K-1, so the savings show up on your personal return. The rent deduction slightly lowers your QBI, which can trim the net benefit a little. We can model your exact numbers.
The strategy is only as strong as your paper trail. Six things to get right:
The Augusta Rule works beautifully for some MSP owners and not at all for others. A quick conversation is the fastest way to know where you stand.
This calculator provides a general estimate for educational purposes only and is not tax, legal, or accounting advice, nor does it create a client relationship. The Augusta Rule (IRC §280A(g)) requires a genuine business purpose, a fair-market rental rate supported by comparables, contemporaneous documentation, and 14 or fewer rental days per calendar year; failing any of these can disqualify the deduction or make the income taxable. Payments over $600 may trigger a Form 1099 and Schedule E reporting with an offsetting §280A(g) exclusion. Actual results depend on your entity structure, state rules, QBI interaction, and individual facts. Consult a qualified tax professional before acting. Jasper Accountancy builds this strategy, with the documentation to back it, directly into our MSP clients' tax plans.
