What is The Augusta Rule?

The "Augusta rule" refers to a provision in the US tax code that allows homeowners to rent out their primary residence for up to 14 days a year without having to report the rental income on their tax return. This rule is named after Augusta, Georgia, where it was first implemented during the Masters golf tournament, allowing homeowners to rent out their houses to golf fans without tax consequences.

Under this rule, if you rent out your home for 14 days or less during the year, you do not have to report the rental income as taxable income. Additionally, you cannot deduct any rental expenses, but you also do not have to pay taxes on the rental income.

It's important to note that the Augusta rule only applies to your primary residence, not second homes or investment properties. If you rent out a property for more than 14 days, you must report all rental income on your tax return and may be eligible to deduct rental expenses such as mortgage interest, property taxes, and maintenance costs.

If you have any specific questions about your taxes and renting out your home, it's recommended that you consult with a tax professional or accountant for personalized advice and guidance based on your individual circumstances.