During the Masters Tournament, homeowners near Augusta National can earn substantial income by renting their residences to golf fans, corporate guests, and media teams. This income is tax-free thanks to the 'Augusta Rule,' which permits homeowners to rent their personal residences for up to 14 days without federal tax liability. The rule applies nationwide and allows homeowners to rent out each personal home separately, making it advantageous for those with multiple properties. Thus, homeowners can significantly benefit financially during this high-demand week without tax consequences.
Once a year, the quiet streets surrounding Augusta National transform into a high-end hospitality zone. Homeowners rent out their properties to golf fans, corporate guests, and media teams, sometimes pulling in six-figure paydays for just seven nights.
Thanks to a little-known provision in the federal tax code - often called the Augusta Rule or Masters Rule - homeowners can rent out their personal residence for up to 14 days each year without paying a cent in income tax on the earnings.
It's not a Georgia rule or an Augusta rule. It is a piece of the federal tax code. It can apply to any rental, anywhere in the U.S., as long as it's a personal home that is rented for less than 15 days.
A personal home can mean either a primary or secondary home, and each qualifies separately. For example, someone with a house in Augusta and a vacation home in Florida could rent both out for 14 days each, pocketing the income tax-free.
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