You are referring to "the Masters exemption". It is named that because so many people take advantage of it every year during the big annual golf tournament in Georgia.
It doesn't matter whether you earn $100 or $10,000 during those 14 days that you rent out space—you don't have to report the earnings on your taxes. However, to qualify, you must:
- Rent part of or your entire house for no more than 14 days during the year
- Live in the house yourself for more than 14 days during the year or at least 10% of the time that you rent it to others.
Less than 15 days of Rental Activity? If you don't qualify for the exemption, use that link to report your rental income.
There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days. In this case, don't report any of the rental income and don't deduct any expenses as rental expenses. See IRS topic 415.
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