--- title: Unlock the Augusta Rule: Earn Tax-Free Income by Renting Your Home aliases: - Unlock the Augusta Rule: Earn Tax-Free Income by Renting Your Home url: https://www.lightuptaxes.com/post/unlock-the-augusta-rule-earn-tax-free-income-by-renting-your-home page_path: /post/unlock-the-augusta-rule-earn-tax-free-income-by-renting-your-home site: lightuptaxes.com organization: Light Up Taxes date_archived: 2026-05-17 language: - en screenshot: screenshots/posts/post-unlock-the-augusta-rule-earn-tax-free-income-by-renting-your-home.png tags: - lightuptaxes - tax - accounting - blog - tax-planning --- # Unlock the Augusta Rule: Earn Tax-Free Income by Renting Your Home > [!quote] > Depreciation isn’t just an accounting term—it’s a powerful tax-saving strategy that can save business owners and real estate investors thousands. In one real-life case, a missed opportunity turned into $150,000 in tax savings using tools like cost segregation, bonus depreciation, and Section 179. Learn how to unlock these deductions and put more cash back into your business. Skip to Main Content HOME ABOUT US SERVICES EVENTS RESOURCES - LET'S TALK - All Posts - Unlock the Augusta Rule: Earn Tax-Free Income by Renting Your Home - Carina Luo - Sep 25, 2025 - 2 min read Updated: Oct 2, 2025 Uncover the truth behind this popular “hack” and when it’s truly applicable to real estate investors and small business owners. What if you could earn a few thousand dollars tax-free —just by renting out your home for a few days a year? That’s exactly what some of our clients did. They rented out their personal residence to their business for corporate events, charging fair market rent. The income never showed up on their tax return—because it didn’t need to. Thanks to IRC Section 280A(g), commonly known as the Augusta Rule, they received nearly $10,000 in tax-free income, while their business take a full deduction. This isn’t a loophole. It’s a legitimate, IRS-approved strategy that many small business owners are missing! What Is the Augusta Rule? Originally created for residents of Augusta, Georgia, who rented out their homes during the Masters golf tournament, the Augusta Rule allows homeowners to rent out their primary or second home for up to 14 days per year —with no income tax liability and no requirement to report the income to the IRS. What Properties Qualify? You can use the Augusta Rule if the property is your: Primary residence Second home or vacation home You cannot use this strategy for: Investment properties Long-term rentals Short-term rentals operated year-round How Can It Help Your Business Save Taxes? If you run a business, especially an LLC or S Corp, you can legally rent your home to your company for business purposes, such as retreats, board meetings, client events, or team trainings. Your business deducts the rent as an ordinary business expense, while you, the homeowner, receive the income completely tax-free. To do this properly: Determine the fair market rent by comparing similar venues or obtaining a rental appraisal Maintain detailed records, such as rental agreement, invoices, meeting agendas, calendar invites, and meeting minutes, etc. Limit rental use to 14 days or fewer per year—renting beyond that makes all the income taxable Pay yourself via business check or ACH, rather than cash Final Thoughts With rising tax complexity, small business owners and real estate investors are looking for smart, legal ways to reduce their tax burden. The Augusta Rule is one of the few strategies that allows you to do just that—earn real income and pay zero tax. But it must be implemented correctly. Curious whether you’re leaving tax-free income on the table? Book a strategy session with LightUp Tax today, and let’s help you unlock more IRS-approved strategy before year-end. Schedule a Discovery Call - 10 views - 0 comments - 1 like. Post not marked as liked - 1 ## Recent Posts - See All - The $6.6 Billion Wake-Up Call: Is Your Equity Strategy Ready for a Liquidity Event? - 83 - 0 - 2 likes. Post not marked as liked - 2 - How to Handle a Large Capital Gain with a CRT Strategy - 13 - 0 - 2 likes. Post not marked as liked - 2 - The Self-Rental Trap: A Hidden Tax Rule That Could Cost You—And How to Avoid It - 28 - 0 - 1 like. 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