04. Eligible Properties & Rental Limits
Eligible Properties & Rental Limits
To qualify under the Augusta Rule (IRC §280A(g)), the property you rent must meet specific criteria.
🏠 Eligible Property Types
You can use the Augusta Rule for the following types of properties — if they are used as a personal residence during the year:
Primary residence
Second home
Vacation home
Airbnb or short-term rental home (if you personally use it)
RVs or boats that qualify as residences (i.e., contain sleeping, cooking, and toilet facilities)
⚠️ Not eligible:
Properties held exclusively for business or rental income
Investment-only homes with no personal use
✅ Tip:
The property must have personal use during the year. If your LLC owns a property used only for clients or tenants — it doesn’t qualify.
📅 The 14-Day Rental Limit
The Augusta Rule provides a strict cap on rental activity:
You can rent your home for 14 days or fewer in a tax year
If you rent for 15 days or more, all rental income becomes taxable
🚫 This is not a prorated rule. Even one extra day disqualifies the entire year’s tax benefit.
✅ Best Practices:
Track rental days in a calendar
Maintain a written rental log
Keep screenshots or documents proving the date and purpose of use
📄 Coming soon: Downloadable rental calendar template
🔁 Summary:
✅ Property must be a personal residence
✅ Rental must be to a separate business entity
✅ Must be ≤ 14 total rental days per year
🚫 No personal use of business-only assets allowed
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