If you’re a homeowner, self-employed, or run your own business, this tax strategy could put tax-free money right in your pocket. It’s called The Augusta Rule, and it’s one of the simplest — yet most overlooked — ways to save on taxes.

What Is the Augusta Rule?

The Augusta Rule allows homeowners to rent out their primary residence for up to 14 days per year — and the income from those rentals is 100% tax-free.

That’s right — whether you list your home on Airbnb, VRBO, or rent it to a friend for a weekend, the income you earn from those short-term rentals is completely excluded from taxable income, as long as the rental period doesn’t exceed 14 days in a calendar year.

With the holidays right around the corner, this could be a great time to take advantage of the rule — especially if you plan to travel and your home will sit empty anyway.

How Business Owners Can Benefit Even More

Here’s where things get even more interesting for self-employed individuals and business owners.

The Augusta Rule also allows you to rent your home out to your own business. That means if you need to host a:

• Company retreat

• Client appreciation dinner

• Strategy meeting

• Team training or holiday event

You can rent your home to your business for up to 14 days, and your business gets to deduct that rental expense — while you personally receive tax-free rental income from it.

Why It Matters at Year-End

As the year wraps up, business owners are looking for legitimate ways to reduce taxable income. This is one of those rare “win-win” opportunities:

• Your business lowers its taxable income.

• You personally receive tax-free income.

Just make sure you document the event, the purpose, and the fair market rental value for compliance — but that’s a small step for a big payoff.

Final Thoughts

The Augusta Rule is one of those strategies that can make a noticeable difference with the right planning. Whether you’re renting your home out while you’re away for the holidays or using it to host a company event, you could be missing out on an easy way to earn up to two weeks of tax-free income every year.

If you have questions about how to implement this strategy properly for your situation, reach out — we’d be happy to walk you through it before year-end.