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Tax strategy · IRC §§ 280A(g), 3121(b)(3)
Renting your home to your business for a few days a year and employing your children are both allowed by the Code, and both are heavily promoted. Each works only with fair rent, real business use, real work and records made at the time.
Serving United States, Virginia, Washington, DC, Maryland.
What we handle
Under section 280A(g), if you rent your home for fewer than 15 days in a year, the rental income is not taxable and no rental deductions are allowed. When your business rents your home for genuine business meetings, the business may deduct a fair rent under section 162 while you exclude it. The rent must match what comparable venues charge, the meetings must be real, and the business needs agendas, attendance and invoices.
Wages paid to your children for real work are deductible to the business and taxed to the child, who can use the standard deduction against earned income. Under section 3121(b)(3)(A), a child under 18 employed by a parent's sole proprietorship, or a partnership owned only by the parents, is exempt from Social Security and Medicare tax, and under section 3306(c)(5) from federal unemployment tax until age 21. These exemptions do not apply to wages paid by a corporation, including an S corporation.
Speak with an advisorWhere we help
An S corporation paid its owners $81,000 to $113,000 a year to rent their homes for monthly meetings. With no appraisal, vague records and unsupported rates, the court allowed only the much lower amount the IRS accepted.
Rent for fewer than 15 days is excluded, but the deduction to the business still requires an ordinary, necessary and reasonable expense.
Children under 18 working for a parent's sole proprietorship or parents-only partnership are exempt from FICA; corporate employers get no exemption.
Promoter templates with inflated daily rates and no meeting records fail.
Our approach
Entity type, meeting needs and family roles.
Rental agreements, rate support, payroll and job descriptions.
Agendas, timesheets and invoices through the year.
Correct filing for the business, owners and children.
Questions
If your question isn't here, call (703) 880-8412 and you'll reach a person.
Only a fair rate for comparable space for the meeting you actually hold, such as a hotel meeting room or event venue nearby. Sinopoli shows that unsupported high rates are cut.
No. The business deduction requires a real business purpose, such as a board, staff or planning meeting.
Yes. The exclusion applies only if the home is rented fewer than 15 days in total for the year.
There is no fixed minimum for tax purposes, but the work must be real, age-appropriate, documented and paid at a reasonable rate. State child labor laws also apply.
No. Wages a corporation pays to the owner's children are subject to Social Security, Medicare and unemployment tax.
Yes. Earned income up to the annual limit can be contributed to a Roth IRA in the child's name.
Latest updates
Authorized representatives can now make balance-due, amended return, extension, proposed assessment and federal tax deposit payments for business clients online. Appropriate authorization for the client and tax matter is required.
Source: IRS (IR-2026-134)
For 2027 the joint-return standard deduction rises to $33,200, the estate tax basic exclusion to $15,480,000, the annual gift exclusion to $20,000 and the Section 179 expensing limit to $2,640,000. Our advisors recommend revisiting year-end gifting and equipment purchase plans with these figures in mind.
Source: IRS (IR-2026-133)
All 6,576 nominated census tracts, including 2,594 rural tracts eligible for enhanced benefits, become Opportunity Zones on January 1, 2027 for ten years. Investors with capital gains should review the new map before committing funds.
Source: IRS (IR-2026-132)
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