If you own a business, there's a little-known rule that lets you rent your personal home to your business for up to 14 days a year and pay zero tax on the rental income. It's called the Augusta Rule.
Where it comes from
The nickname comes from Augusta, Georgia, where homeowners famously rent out their houses during the Masters golf tournament. The tax code lets any homeowner rent out their home for 14 days or fewer per year and keep that rental income completely tax-free.
How business owners use it
If you run a business, your business can rent your home for legitimate purposes, think board meetings, planning sessions, or team events, for up to 14 days a year. Your business deducts the rent as an expense, and you receive that money tax-free. In plain terms: money moves from your business to your pocket tax-free, and it lowers your business's taxable income at the same time.
What to keep in mind
This only works if it's real. The meetings have to actually happen, the rent has to be reasonable (what a real venue would charge), and you need to document it: meeting notes, an invoice, and proof of the going rate. Skip the paperwork and it falls apart if you're ever audited.
The bottom line
Done right, the Augusta Rule is a clean way to move money out of your business tax-free. Done sloppily, it's an audit red flag. This is exactly the kind of strategy a Breadify membership sets up and documents for you, so you get the savings without the risk.