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IRC Section 280A (Augusta Rule) Policy

Under Internal Revenue Code (IRC) Section 280A(g)—commonly known as the "Augusta Rule"—a homeowner may rent their personal residence to a business or third party for up to 14 days per calendar year without having to report the rental income on their personal federal tax return, provided the rental satisfies bona fide business expense criteria for the paying corporation.

1. Corporate Business Purpose & Prerequisites​

For Alas 9 Inc. or its subsidiary ventures to deduct rental expenses paid to an executive or shareholder under Section 280A:

  1. Legitimate Business Purpose: The rental must serve an authentic corporate purpose, such as an executive strategy summit, board meeting, quarterly financial review, or specialized creative workshop.
  2. Ordinary and Necessary: The expense must be ordinary and necessary under IRC Section 162.
  3. Fair Market Value (FMV): Rental rates must reflect verifiable local market comparables for equivalent commercial event spaces, executive meeting rooms, or retreat venues. Rates cannot be arbitrarily inflated.
  4. 14-Day Strict Annual Limit: The residence may not be rented for more than 14 cumulative days in a single tax year under this exemption. Rental on the 15th day disqualifies the exemption for all preceding days.

2. Mandatory Documentation Protocol​

Every Section 280A corporate event requires complete audit documentation compiled prior to disbursement:

┌──────────────────┐     ┌──────────────────┐     ┌──────────────────┐
│  1. Event Agenda │ ──> │ 2. Fair Market   │ ──> │ 3. Formal Lease  │
│  & Business Goal │     │    Rate Comps    │     │    Agreement     │
└──────────────────┘     └──────────────────┘     └──────────────────┘
                                                           │
                                                           ▼
┌──────────────────┐     ┌──────────────────┐     ┌──────────────────┐
│ 6. Corporate     │ <── │ 5. Invoice &     │ <── │ 4. Minutes &     │
│ Bank Disbursement│     │ Receipt Record   │     │ Attendance Roster│
└──────────────────┘     └──────────────────┘     └──────────────────┘
  1. Formal Board Resolution / Approval: Approval entered in corporate minutes authorizing the use of the property for the specific dates.
  2. Independent Rate Comparables: Written printouts or quotes from local meeting rooms, hotels, or Peerspace/Airbnb listings establishing commercial day rates for similar group sizes.
  3. Rental Agreement: Executed corporate lease agreement between the homeowner and Alas 9 Inc. specifying dates, rate, and permitted areas.
  4. Meeting Minutes & Deliverables: Comprehensive meeting notes, written agenda, signed attendee roster, and resulting action items proving legitimate corporate business transpired.
  5. Corporate Payment: Direct electronic corporate disbursement or check issued from the corporate operating account payable to the homeowner. No cash transactions.