Answer extracted from the Proven Podcast podcast — listen to the full episode below.
How can business owners take advantage of Section 280G for residential rental deductions?
Section 280G allows you to rent your home for 14 days to your business, write it off as a business expense, and avoid claiming it as personal income. Most business owners never discover this opportunity, whether they use it for team retreats, filming, client meetings, or other legitimate business activities.
A Deduction Most Entrepreneurs Overlook
The tax code contains numerous provisions designed specifically for business owners, yet many CPAs and tax preparers operate as historical accountants rather than strategic tax planners. This gap leaves money on the table. Section 280G is one such provision that sits in plain sight—fully compliant, legally straightforward—yet remains underutilized because it requires coordinated planning between your tax strategist and legal team.
When you rent your residential property to your business for up to 14 days annually, the rental income you receive from your company is entirely deductible as a business expense on your corporate return, while you avoid reporting it as personal rental income. This works for any genuine business purpose: hosting client dinners, company retreats, filming content, board meetings, or employee training sessions. The key requirement is that the arrangement must be legitimate and documented—you're not renting an empty room, you're providing a real business venue.
As Garrett Gunderson explains in the episode, the disconnect between tax filing and tax strategy means entrepreneurs often miss these opportunities because their accountant's job ends after year-end reconciliation. Tax strategy, by contrast, is forward-looking and proactive.
Why Your Current Tax Advisor May Not Mention It
Most CPAs and enrolled agents operate in reactive mode: they file your taxes based on what happened last year and tell you what you owe. A true tax strategist, by contrast, identifies deductions and structures available to you before the year ends. The difference between a tax historian and a tax strategist determines how much you keep, and Section 280G is a perfect example of this gap.
Additionally, proper use of Section 280G often requires coordination between your accountant and your legal counsel. If your entity type (S-corp, LLC, C-corp, sole proprietor) isn't structured optimally, you may miss out on this and dozens of other deductions. This is why a coordinated team—not just a single CPA filing your return—is essential. The Proven Podcast explores these coordination challenges in depth, showing how siloed professionals leave real tax savings on the table.
"Delaying tax and saving tax are completely different things. So really, there's this easy framework."
Garrett Gunderson — Financial Entrepreneur, Author, and Wealth Strategist. Gunderson has helped thousands of business owners create lasting prosperity by focusing on cash flow, efficiency, and economic independence. He has written 10 books, with four currently ranking in the top 100 of Amazon categories, and has built Multiplier, a comprehensive program combining weekly coaching and financial planning technology evolved from over a decade of client work.
For deeper insight into how to structure your entire financial and legal strategy as a business owner—and how entity choice alone can unlock millions in tax-free exits—listen to the full conversation on Listenly, where Gunderson walks through real numbers and specific provisions that most entrepreneurs have never heard of.
Key takeaways
- Section 280G permits business owners to rent their residence for up to 14 days annually to their company and deduct the full rental amount as a business expense.
- The rental income reported by the business is not taxed as personal rental income to the property owner, creating a unique tax advantage.
- Common business uses include team retreats, client entertainment, filming, training sessions, and board meetings—any legitimate corporate purpose qualifies.
- Most business owners miss this deduction because reactive tax filing (year-end reconciliation) differs fundamentally from proactive tax strategy (forward-looking planning).
- Proper execution requires coordination between your tax strategist and legal counsel, ensuring your entity structure maximizes all available deductions.
See also
What are the key components of a coordinated financial and legal tax strategy team?
You need four core components: first, timely financial data through a CFO, controller, or bookkeeper; second, a tax strategist to maximize tax deductions; third, a legal expert coordinated with your accountant to ensure the right entity structure; and fourth, ongoing strategic planning rather than just year-end tax filing.
What is the tax-free exit strategy using Section 1202 for C Corporation owners?
If someone is a C corporation that has been in operation for at least three years, they could sell for up to $7.5 million tax-free using Section 1202. If they've been in business for five years, that's $15 million tax-free per partner.
How does the discovery of fire compare to artificial intelligence in terms of transformative impact?
AI is equivalent to the discovery of fire in that it will fundamentally change everything. While people focus on the current tidal wave hitting them, the real opportunity lies in understanding how to leverage it strategically.