IRC §280A(g) allows you to rent your personal residence to your business for up to 14 days per year without reporting the rental income on your personal return. Your business deducts the rent as a business expense. At $2,000 per day for a business meeting or retreat, that is $28,000 of tax-free income.
Getting the deduction right is not just about whether it is allowed — it is about how you set it up.
The home must be rented for a legitimate business purpose -- board meetings, team retreats, strategy sessions, client events. The business activity must actually occur at the home.
Document each meeting with an agenda, attendee list, and meeting minutes. Research comparable meeting space rental rates in your area to establish fair market value.
Have your business write a check to you personally for the rental. Keep the total at 14 days or fewer per year. Do not report the rental income on your personal return (it is excluded under §280A(g)).
Do not exceed 14 days. Do not charge above fair market rate. Do not use this strategy without documented business meetings.
Research hotel conference room rates in your area -- these are often $1,500 to $3,000 per day. Use that as your benchmark for a defensible rental rate.
When structured correctly, this deduction can significantly reduce your taxable income.
Here is how this deduction typically works in real situations:
A sole proprietor rents their home to their business for 10 days of client meetings at $1,500 per day.
An S-Corp rents the owner's home for 14 days of board meetings and strategy sessions at $2,000 per day.
A business owner rents their home for 20 days and charges $5,000 per day with no meeting documentation.
Key Takeaway: The difference between a valid deduction and a denied one usually comes down to documentation, usage percentage, and proper structuring. The same expense can be fully deductible, partially deductible, or not deductible at all — depending on how it is handled.
IRC §280A(g) allows you to rent your home to your business for up to 14 days per year. The rental income is tax-free to you, and the business deducts the rent.
The fair market rate for comparable meeting space in your area. Research local hotel conference rooms or event venues to establish a defensible rate.
Yes -- it works for sole proprietors, LLCs, S-Corps, and C-Corps. The business pays you rent, deducts it, and you receive it tax-free (up to 14 days).
