Can you explain the Augusta rule

[IrmaN]

@bobnjamie30001 

What is the Augusta Rule? The Augusta Rule, known to the IRS as Section 280A, allows homeowners to rent out their home for up to 14 days per year without needing to report the rental income on their individual tax return.

In order to take advantage of the Augusta tax-exemption, you would simply rent out your place of residence for up to 14 days of the calendar year and not report the rental income on your individual tax return

[Cindy4]

Hi @bobnjamie30001 !

Here is an excerpt from the below article that explains it really well:

"

Tax laws are full of exceptions, but the 14-day rule—sometimes called the "Masters exception" because of its popularity in Georgia during the annual Masters golf tournament—is the most important for anyone considering renting out a vacation home. Under this rule, you don't report any of the rental income you earn from the short-term rental, as long as you:

• Rent the property for no more than 14 days during the year AND
• Use the vacation house yourself 14 days or more during the year

If you meet the requirements of the 14-day rule, you do not have to report the income on your taxes and you don't deduct any expenses as a rental expense."

https://turbotax.intuit.com/tax-tips/rental-property/10-tax-tips-for-airbnb-homeaway-vrbo-vacation-r...

Hope this helps!

Cindy