The Augusta Rule: Tax-Free Money — But Only If You Structure It Right
One of the cleanest tax strategies out there…
But also one of the most misunderstood.
Here’s the idea:
➡️ You rent your primary residence to your business for up to 14 days per year.
➡️ Your business gets to deduct the rent as a business expense.
➡️ You personally receive that income tax-free.
Sounds like a win, right?
✅ It is — if your business is properly structured.
Here’s what most people miss:
❌ You can’t do this if your business is a sole proprietorship.
❌ Or a single-member LLC without an S-Corp election.
To actually use this strategy:
✅ Your business must be a separate taxable entity from you.
That includes:
• LLCs taxed as S-Corps.
• Multi-member LLCs or Partnerships.
• C-Corps and S-Corps.
And yes — you’ll also need to do it right:
📄 Create a formal rental agreement.
💵 Price it at market rate.
🧾 Keep documentation: calendar invites, invoices, meeting agendas, etc...