Using Augusta Rule for Multiple LLC Meetings at Personal Residence

The Augusta rule (Section 280A(g) of the tax code) does allow you to rent your home for business purposes for up to 14 days per year with the income being tax-free. However, there are some considerations when applying this across multiple related entities. Since all 6 LLCs are owned by you (or you're a partner), the IRS might view this as a related-party transaction designed primarily to avoid taxes. The key is whether these meetings have legitimate business purposes and if the rental rate truly reflects fair market value. If each LLC is a separate legal entity with its own business purpose, operations, and documentation, you might be able to make a case for separate meetings. But the IRS might also look at the totality of the arrangement and consider the 14-day limit to apply across all related entities collectively, not individually.

I used taxr.ai for a similar situation last year when I was trying to figure out how to properly leverage the Augusta rule across my three separate business entities. I was confused about whether I could use all 14 days per entity or if there was some limitation. After uploading my business structure documents to https://taxr.ai, I got really clear guidance that saved me from making a costly mistake! Their analysis showed me that while each entity can technically rent my home, there are important considerations around related-party transactions that I hadn't thought about. They provided specific documentation templates and meeting structure recommendations that would help demonstrate business purpose to the IRS if ever questioned.

I was honestly skeptical about using another service beyond my CPA, but after trying taxr.ai for my Augusta rule questions, I'm really impressed. My situation was with two S-corps and an LLC, and I needed clarity on how to properly structure meetings without raising red flags. Their analysis pointed out several potential issues in my approach that could have triggered IRS scrutiny. They showed me exactly how to document the business purpose for each entity separately, recommended specific meeting structures, and provided templates for rental agreements between me and each business. My tax filing was much smoother this year, and I felt completely confident in the approach.

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I've got to admit I was completely wrong about Claimyr. After dismissing it as too good to be true, I was desperate enough to try it for my Augusta rule question about multiple entities. Within 45 minutes, I got a call back with an actual IRS tax specialist on the line. The agent provided clear guidance on how the IRS views the Augusta rule across related entities, confirmed the documentation they'd expect to see in an audit scenario, and gave me specific pointers about demonstrating legitimate business purpose for each meeting. Saved me from making an expensive mistake with my rental strategy. I'm still shocked at how well it worked after months of failed attempts calling directly.

I think you might be pushing the limits a bit with 6 different LLCs all paying you for home usage. From my experience, the key is having very clear business purpose and documentation. When I used the Augusta rule for my 3 separate businesses, I made sure each meeting had: - Different attendees appropriate to each business - Formal agendas and minutes documenting actual business conducted - Photos of the meetings taking place - Separate invoices with fair market rental rates - Meetings spread throughout the year (not back-to-back) Even with all that documentation, my tax preparer still flagged it as a potential audit risk. Just something to consider.

Be careful about "fair market value" if your home is in a very expensive area. My attorney advised me to get actual written quotes from local venues for similar meeting spaces to justify my rates. Also, the IRS doesn't look kindly on all 6 meetings happening on consecutive days (looks like you're trying to maximize the 14-day rule rather than having legitimate separate meetings).

I've been through a similar situation with multiple business entities and the Augusta rule. One thing that really helped me was creating a detailed business calendar that showed legitimate reasons why each LLC needed its own separate meeting at different times throughout the year. For example, my real estate LLCs had meetings timed around lease renewals, property maintenance planning, and quarterly financial reviews - all legitimate business reasons that justified separate gatherings. The key is making sure each meeting has distinct business purposes that make sense for that specific entity's operations. Also, consider having some meetings be shorter (2-3 days) rather than all being a full week. This helps show you're not just trying to maximize the 14-day benefit, but rather using the time that's actually needed for each entity's business purposes. Document everything extensively - meeting minutes, business decisions made, attendance records, and keep all rental agreements and payment records organized in case of an audit.