What the Augusta Rule is
Named for the homeowners who rent out during the Masters golf tournament, the Augusta Rule comes from Section 280A(g). If you rent a dwelling you use as a residence for fewer than 15 days during the year, you do not report the rental income at all — it is entirely tax-free.
The trade-off: because the income is excluded, you also cannot deduct rental expenses for those days. You keep your normal mortgage interest and property tax itemized deductions, but no depreciation or operating write-offs against the exempt rent.
How business owners use it
A common strategy: a business owner rents their personal home to their own company for legitimate meetings, up to 14 days a year. The company deducts the rent as a business expense, and the owner receives it tax-free under 280A(g). The rate must be reasonable — document comparable local venue pricing — and the meetings must be real, with minutes and invoices.
The 14-day line is strict
Rent for 15 days or more and the exclusion is gone entirely; all the income becomes reportable and you fall under the normal vacation-home rules. Count carefully, keep a calendar, and keep contemporaneous documentation of each rental and its business purpose.
Frequently asked questions
Is Augusta Rule income really tax-free?
Yes, if you rent a personal residence fewer than 15 days in the year, Section 280A(g) excludes the income entirely — you do not even report it.
Can I deduct expenses for the rental days?
No. Because the income is excluded, expenses tied to those days are not deductible. You keep normal mortgage interest and property tax itemized deductions.
Does renting my home to my own business work?
It can, if the rent is reasonable, the meetings are legitimate and documented, and you stay under 15 days. Sloppy documentation is the main audit risk.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.