14 day Augusta rule for S corp renting primary residence - tax implications?

7 This seems too good to be true - the IRS just lets this slide? Do they scrutinize these arrangements closely? Also, how would I determine a "fair market rate" for renting my home for business meetings?

15 The IRS allows this because it's explicitly written into the tax code - it's completely legal when done correctly. That said, they may look more closely at related-party transactions, so documentation is crucial. For determining fair market rates, you have a few options: check what local venues charge for meeting spaces of similar size, what short-term rentals in your area go for, or consult with a real estate professional who can provide a written estimate. Document whatever method you use to establish your rate.

11 How does the service handle documentation requirements? My biggest concern is making sure I have everything in place if the IRS comes knocking.

18 Sounds interesting but I'm wondering if they help with determining the fair market value for rental rates? That seems like the trickiest part to me since I have no idea what my 4-bedroom house would rent for as a "meeting space.

3 They provide a comprehensive checklist of all required documentation, including templates you can customize. They specifically highlighted areas where the IRS typically looks for discrepancies, like inadequate business purpose documentation or unreasonable rental rates. They actually do help with the fair market value determination. They provided comparable rates for meeting spaces in my area based on square footage and amenities, and gave me a range that would be considered reasonable. They even suggested documenting why my home was particularly suitable for the meetings (privacy, specialized equipment, etc.) to further strengthen the business purpose.

8 Wait, how does this actually work? Does it just call the IRS for you? I'm confused why I would pay for something I could do myself.

14 I've tried calling the IRS countless times about business tax questions and never get through. This service sounds too good to be true. No way they're getting through when nobody else can. What's the catch?

22 It doesn't just call for you - it uses their system to navigate the IRS phone tree and hold times, then calls you once they've reached a human agent. You're literally connected directly to an IRS representative without the hours of waiting. There's no catch - they've figured out how to efficiently navigate the IRS phone system. I was skeptical too, but when I got a call back with an actual IRS agent on the line after trying unsuccessfully for weeks on my own, I was convinced. They don't provide tax advice - they just connect you with the IRS so you can get official answers directly.

10 But if the income isn't taxable to the homeowner under the Augusta Rule, why would the S corp need to issue a 1099? Seems contradictory.

5 The 1099-MISC requirement is separate from whether the income is taxable to you. The S corp is still required to report payments over $600 made in the course of business. The IRS uses these forms to match reported expenses with reported income. When you file your personal return, you would technically report this rental income on Schedule E, but then exclude it under Section 280A. This way, the IRS can see you received the income (matching the 1099) but are properly excluding it under the 14-day rule.

9 I wasn't audited specifically for the Augusta Rule, but had a general S corp audit that included reviewing these transactions. The agent wanted to see: 1) proof the meetings actually occurred, 2) business purpose documentation, 3) fair market value justification for the rental rate, and 4) corporate minutes authorizing the rental. Having photos of the meetings and detailed agendas really helped.

This is really helpful advice about the business purpose requirement. I'm curious about the documentation aspect - when you mention taking photos of meetings, what exactly should those photos show? Just the meeting in progress, or should they capture specific business materials being discussed? Also, regarding spreading the 14 days throughout the year, is there a minimum time gap the IRS expects between rental periods, or is it more about avoiding obvious patterns that look artificial?

Great points about business purpose documentation! I'd also recommend keeping contemporaneous notes during each meeting that clearly outline the business decisions made and why the home setting was necessary. For example, if you're discussing a potential acquisition, document that the confidential nature required a private setting away from employees who might overhear at the office. Regarding timing, while there's no specific IRS rule about spacing, I've found that having rentals coincide with natural business cycles (quarterly planning sessions, annual strategy meetings, etc.) helps establish legitimacy. The key is that each rental should have an independent business justification rather than appearing to be manufactured just to hit the 14-day limit. One more tip: consider having your attorney or CPA attend some of these meetings when appropriate. Their presence and professional notes can add significant credibility if questioned later.

This is excellent advice about the homeowner's insurance implications - I hadn't even considered that angle! The point about documenting specific amenities that justify your rental rate is particularly valuable. I'm curious about the Section 121 home sale exclusion you mentioned - could you elaborate on what kind of complications might arise? Are you referring to potential issues with the "business use" test, or is there something specific about the Augusta Rule rentals that could affect the $250k/$500k exclusion when selling your primary residence? I want to make sure I'm not creating any unintended tax consequences down the road.