01. Executive Summary

Executive Summary

The Augusta Rule, formally recognized as Internal Revenue Code Section 280A(g), offers a unique and powerful tax strategy for homeowners.

🔗 View IRC §280A(g) on Cornell Law

This provision allows individuals to rent their personal residence for up to 14 days per year without reporting the rental income on their tax return — making it federally tax-free.

For business owners, this creates a dual benefit:

• The homeowner receives tax-free rental income

• The business can deduct the rental cost as a legitimate business expense

🔍 Key Supporting Articles:

• How to Document the Augusta Rule – Manifestly

• SmartAcct: Maximize Your Tax Savings with the Augusta Rule

• Weaver: Augusta Rule Tax Benefits for Homeowners

⚠️ Caution:

Never exceed 14 rental days. If you go to 15 or more, all rental income becomes fully taxable.