What is the Augusta rule exclusion?

The Augusta rule exclusion is a federal tax provision under Section 280A(g) that allows homeowners to rent their residence for up to 14 days per year without reporting the rental income on their personal tax return, regardless of the amount received. This exclusion applies to any residential property used for personal purposes and requires that the rental arrangement serve legitimate business purposes. The Augusta rule creates powerful tax planning opportunities for business owners operating through S Corporations, C Corporations, or Partnerships.

Related Terms

What is a C Corporation?

What is an S Corporation?

What is a Partnership?

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Tax loss harvesting

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Augusta rule

The Augusta Rule lets homeowners rent their property tax-free for up to 14 days a year without reporting the income.

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