The Augusta Rule: How to Earn $15K Tax-Free From Your STR This Year
The Augusta Rule allows homeowners to rent a personal residence for up to 14 days per year without reporting the rental income federally, when structured correctly and priced at fair market value.
For investors and owner-occupants near major event demand, it can turn unused days into tax-advantaged income without converting the property into a full-time rental business.
Where it works best
- Event markets with short bursts of extreme lodging demand, such as Augusta during Masters week.
- Primary residences near stadiums, festivals, hospitals, or university events.
- High-quality homes where comparable hotel inventory is constrained.
Compliance basics
The rental must be 14 days or fewer during the tax year, and the rate should be defensible with comparable market evidence. Documentation matters: keep booking records, event calendars, comparable rates, and payment trails.
This is not a substitute for professional tax advice. State, local, and occupancy tax rules can still apply even when federal income treatment is favorable.
Investor use case
For a property that already works as a primary residence or long-term hold, the rule can add a meaningful annual income boost. It should not be the only reason to buy an otherwise weak asset.
Rova's take
The tax benefit is powerful when documented correctly and paired with a property that already makes sense.