Part 01
How does the rule actually work?
Two sides of the same rent: a deduction for the business, tax-free income for you, as long as both hold up.
Free video for business owners · Instant access
Rent your home to your business. Tax-free, up to 14 days a year.
It's called the Augusta Rule. Most owners have heard of it, few use it, and even fewer set it up so it holds up. In this short video, Norm Westervelt walks through how it works, who it fits, and the paperwork that keeps it defensible.
The video
Press play. It starts right here.
A link to this video is also on its way to your inbox, so you can come back to it anytime. The Augusta Rule is one move: in a free 30-minute session, Eric Sullivan looks at how it fits with the rest of your plan.
What's inside
Four questions, answered in one short video.
Section 280A(g) of the tax code says that if you rent out your home for 14 days or fewer in a year, you don't report that rent as income. When the renter is your own business, holding a real meeting, the business can also deduct it.
Part 02
Can your business use it?
Why an S corp, C corp or partnership can rent your home, and a sole proprietorship can't.
Part 03
What's a defensible rate?
How comparable local meeting space sets the number, and why a rate picked out of thin air gets cut first.
Part 04
What paperwork keeps it safe?
Agendas, attendees and notes for every rental day, and the 15th-day mistake that makes the whole year taxable.
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Before you watch
Is this video for you?
The rule fits some businesses well and others not at all. If it fits yours, it's worth getting right. In 2023 the Tax Court cut one S corporation's rent deductions from about $290,000 over three years to $500 a meeting, because there were no agendas, no minutes and no comparable rates.
It's for you if
- Your business pays you $250K or more a year
- Your business is an S corp, C corp or partnership, and you own your home
- You want every legitimate deduction working, done properly
It isn't for you if you want
- A loophole without the paperwork
- More than 14 rental days
- One trick instead of a plan
Instant access, no charge
Who's behind it
The people behind the method.
Norm explains the rule in the video. Eric runs the free sessions where owners see how it fits with the rest of their plan.
Norm Westervelt
CEO
Leads the Wealth Factory method: turning business income into one coordinated personal wealth strategy.
LinkedIn ↗
Eric Sullivan
Principal · Wealth Architect
Works directly with business owners on liquidity, cash flow, owner compensation and long-term wealth.
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Educational content only. Not tax, legal or investment advice. Wealth Factory does not prepare tax returns. Talk to a qualified tax professional before applying any strategy.
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