--- title: "The Augusta Rule: How I Used It in Real Life | Addicted to ROI" description: "How the Augusta Rule (IRC Section 280A(g)) lets you rent your home up to 14 days a year tax-free. Two real examples, common mistakes, and a simple action plan. Consult your CPA." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "@id": "https://addictedtoroi.com/#organization", "name": "Addicted to ROI", "url": "https://addictedtoroi.com", "logo": { "@type": "ImageObject", "url": "https://addictedtoroi.com/images/logo.png" }, "description": "Live your best life funded by your investments. 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Built an 8-figure rental portfolio across multiple states and teaches everyday investors how to build passive income.", "worksFor": { "@id": "https://addictedtoroi.com/#organization" }, "sameAs": [ "https://agentsinvest.com", "https://doorprofit.com", "https://repstime.com", "https://strhours.com", "https://kidspayroll.com", "https://rentstager.com" ] }, { "@context": "https://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://addictedtoroi.com/blog/augusta-rule-real-life-mastermind-family-trip/" }, "headline": "The Augusta Rule in Real Life: How I Used It for a Mastermind and Paid for a Family Trip", "description": "How the Augusta Rule (IRC Section 280A(g)) lets you rent your home up to 14 days a year tax-free. Two real examples, common mistakes, and a simple action plan. Consult your CPA.", "image": "/images/about-family-germany.jpg", "datePublished": "2026-03-27", "dateModified": "2026-03-27", "author": { "@id": "https://addictedtoroi.com/#jennifer" }, "publisher": { "@id": "https://addictedtoroi.com/#organization" }, "speakable": { "@type": "SpeakableSpecification", "cssSelector": [ ".tldr-answer", "h1" ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://addictedtoroi.com" }, { "@type": "ListItem", "position": 2, "name": "Blog", "item": "https://addictedtoroi.com/blog" }, { "@type": "ListItem", "position": 3, "name": "Tax Strategies", "item": "https://addictedtoroi.com/blog?category=tax-strategies" }, { "@type": "ListItem", "position": 4, "name": "The Augusta Rule in Real Life: How I Used It for a Mastermind and Paid for a Family Trip", "item": "https://addictedtoroi.com/blog/augusta-rule-real-life-mastermind-family-trip/" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is the Augusta Rule?", "acceptedAnswer": { "@type": "Answer", "text": "The Augusta Rule comes from IRC Section 280A(g). It allows a homeowner to rent out their personal residence for up to 14 days per year without reporting that rental income on their personal tax return, assuming the requirements are met. Business owners often use it when their company has a legitimate need for meeting space: the business pays rent and may receive a deduction, and the homeowner receives rental income that, under the right circumstances, may not be taxable. Always confirm your situation with a CPA." } }, { "@type": "Question", "name": "How many days can you rent your home under the Augusta Rule?", "acceptedAnswer": { "@type": "Answer", "text": "Up to 14 days per year. If you rent your personal residence for 14 days or fewer in a year and meet the requirements, you generally do not have to report that rental income. Rent it for 15 days or more and the rule no longer applies, so the income becomes reportable. Track your days carefully and talk with your tax advisor." } }, { "@type": "Question", "name": "How do you set a rental rate for the Augusta Rule?", "acceptedAnswer": { "@type": "Answer", "text": "The rental rate should be reasonable and supportable, not a number you made up. Research comparable meeting venues and event spaces in your area, take screenshots, and save the pricing as documentation. If your home can hold the kind of event you are renting it for, the rate should line up with what a similar local venue would charge. Keep that evidence with your records in case the IRS asks." } }, { "@type": "Question", "name": "What documentation do you need for the Augusta Rule?", "acceptedAnswer": { "@type": "Answer", "text": "Keep records that prove a real business purpose and a fair price. That means agendas, attendee lists, meeting notes, calendar records, and comparable venue pricing for the rental rate. Build this documentation before the event happens, not afterward. The more organized your records, the stronger your position if the deduction is ever questioned." } } ] } ] --- [![Addicted to ROI](/images/logo.png)](/) [Travel](/pillars/travel/)[Real Estate](/pillars/real-estate/)[Tax Savings](/pillars/tax-savings/)[Business](/pillars/business/)[Paths](/paths/)[Blog](/blog/)[Tools](/tools/)[Apps](/software/)[About](/about/) [Login](https://members.addictedtoroi.com/) Subscribe [Travel](/pillars/travel/)[Real Estate](/pillars/real-estate/)[Tax Savings](/pillars/tax-savings/)[Business](/pillars/business/)[Paths](/paths/)[Blog](/blog/)[Tools](/tools/)[Apps](/software/)[About](/about/)[Login](https://members.addictedtoroi.com/) Contents 1. [01 What is the Augusta Rule? ](#what-is-the-augusta-rule) 2. [02 Example 1: hosting a mastermind at my house ](#example-1-hosting-a-mastermind-at-my-house) 3. [03 Example 2: renting my house while we were in Moab ](#example-2-renting-my-house-while-we-were-in-moab) 4. [04 Common Augusta Rule mistakes ](#common-augusta-rule-mistakes) 5. [05 Augusta Rule action plan ](#augusta-rule-action-plan) 6. [06 Final thoughts ](#final-thoughts) [Home](/)/ [Blog](/blog/)/ [Tax Savings](/pillars/tax-savings/) Tax Strategies # The Augusta Rule in Real Life: How I Used It for a Mastermind and Paid for a Family Trip The Augusta Rule lets you rent your home for up to 14 days a year without reporting the income. Here's how I actually used it twice, one win and one I wouldn't repeat. March 27, 2026 8 min read Contents 1. [01\. What is the Augusta Rule?](#what-is-the-augusta-rule) 2. [02\. Example 1: hosting a mastermind at my house](#example-1-hosting-a-mastermind-at-my-house) 3. [03\. Example 2: renting my house while we were in Moab](#example-2-renting-my-house-while-we-were-in-moab) 4. [04\. Common Augusta Rule mistakes](#common-augusta-rule-mistakes) 5. [05\. Augusta Rule action plan](#augusta-rule-action-plan) 6. [06\. Final thoughts](#final-thoughts) tl;dr The Augusta Rule, from IRC Section 280A(g), lets you rent your personal home for up to 14 days a year without reporting that rental income, when the requirements are met. Business owners often use it to rent their home to their company for legitimate meetings, so the business may deduct the rent while the homeowner receives the income. The keys are a real business purpose, a reasonable and supportable rental rate, and strong documentation. Always confirm with your CPA. One of my favorite tax strategies isn't flashy. It doesn't involve a cost segregation study. It doesn't require buying a rental property. And it doesn't require tracking hundreds of hours. It's called the Augusta Rule. Most investors hear about it once, think it sounds too good to be true, and move on. I almost did the same thing. Then I started looking at how it could actually apply to situations I already had in my business. The result? I've personally used the Augusta Rule in two completely different ways. Let's start with what the rule actually is. ## What is the Augusta Rule? The Augusta Rule comes from Section 280A(g) of the tax code. In simple terms, it allows homeowners to rent out their personal residence for up to 14 days per year without reporting that rental income on their personal tax return, assuming the requirements are met. Business owners often use this strategy when their business has a legitimate need for meeting space. The business pays rent. The business may receive a deduction. The homeowner receives rental income. Under the right circumstances, that rental income may not be taxable. As always, discuss your specific situation with your CPA or tax advisor before implementing any tax strategy. Now let's talk about how I actually used it. ## Example 1: hosting a mastermind at my house A few years ago, I hosted a mastermind event for paying students in one of my businesses. The business had a legitimate reason to hold the event. We had attendees. We had an agenda. We had training sessions. We had discussions and planning activities. Instead of renting a hotel conference room or event space, we used my personal residence. The business rented the property for the event. The business also paid for legitimate event-related expenses including catering and other mastermind costs. From the business perspective, there was a real business event with real business expenses. From my personal perspective, I was renting my home for a qualifying business purpose. The result was a much better outcome than simply paying for an expensive event venue. The biggest lesson? Documentation matters. We maintained records of the event, attendees, schedules, and business purpose. If you're considering a similar strategy, talk with your tax advisor before the event occurs. ## Example 2: renting my house while we were in Moab This one had nothing to do with a business. It involved a family trip. Several years ago, we planned a trip to Moab, Utah. Rather than letting our house sit empty, we rented it out for a short period while we were gone. The income from that rental essentially paid for our entire vacation. That felt pretty amazing at the time. The house generated income. The trip was covered. Everybody wins. At least that's what I thought. What I learned afterward was that the money wasn't the hard part. The hard part was preparing my personal home for guests. Cleaning. Organizing. Moving personal items. Preparing the property. Coordinating the stay. Managing the logistics. By the time it was over, I realized something. Just because a strategy works doesn't mean it's something I want to repeat. Would I do it again? Probably not. The income was great. The disruption wasn't worth it for me personally. That's an important lesson many tax articles leave out. A strategy can be technically correct and still not fit your lifestyle. ## Common Augusta Rule mistakes Whenever I talk about this strategy, I see people make the same mistakes. ### Mistake 1: making up a rental rate The rental rate should be reasonable and supportable. Research comparable meeting venues and event spaces in your area. Save documentation. ### Mistake 2: no business purpose The event should have a legitimate business reason. A family gathering is not suddenly a board meeting because you printed an agenda. ### Mistake 3: poor documentation Maintain: - Agendas - Attendee lists - Meeting notes - Calendar records - Comparable venue pricing The more organized your records, the stronger your documentation. ## Augusta Rule action plan If you're a business owner, here's what I'd do this week. Step 1. Review every meeting, retreat, workshop, training session, or planning day your company holds annually. Step 2. Determine whether your home could reasonably serve as a meeting venue. Step 3. Research comparable venue rental rates in your area. Take screenshots and save pricing information. Step 4. Discuss the strategy with your CPA before implementing it. Step 5. Create a documentation process before the event happens. Not afterward. ## Final thoughts One thing I've learned over the years is that tax strategies are most valuable when they fit your actual life. The Augusta Rule worked well for my mastermind. It also worked when we rented our home during a family trip. But those were two completely different situations. The lesson isn't that everyone should use the Augusta Rule. The lesson is that opportunities often exist inside activities you're already doing. Sometimes the smartest tax strategies aren't about creating something new. They're about structuring something you're already doing in a more intentional way. That same logic is why so many business-owning parents end up [paying their kids from the family business](/blog/how-to-pay-your-kids-from-your-real-estate-business/), and why I built [Kids Payroll](https://kidspayroll.com) to handle the paperwork that keeps a strategy like that audit-ready. If you want more ideas like this, take a look at [the tax strategies real estate investors wish they learned earlier](/blog/tax-strategies-real-estate-investors-wish-they-learned-earlier/) and [8 missed tax opportunities for real estate investors](/blog/8-missed-tax-opportunities-real-estate-investors/). Disclaimer: This article is for educational purposes only and should not be considered tax, legal, or accounting advice. Consult your CPA, EA, or tax advisor regarding your specific circumstances before implementing any tax strategy. Addicted to ROI is education and community, not financial or tax advice. Talk to a qualified professional before making investment or tax decisions. ![Jennifer Beadles](/images/founders.jpg) Jennifer Beadles Real estate entrepreneur with 17 years of hands-on investing experience. Built an 8-figure rental portfolio across multiple states and has helped thousands of investors build passive income through the Addicted to ROI community. The tool that goes with this ## Let Kids Payroll do the heavy lifting [ Tax strategy Kids Payroll Handle the paperwork, payroll and records to legally put your kids on payroll, move income into their lower bracket and fund their Roth IRA, without piecing it together yourself. Set up kids payroll ↗ ](https://kidspayroll.com) Before you close the tab ## Get the next one in your inbox. One email per new article, the day it goes up. No wall, no spam, unsubscribe in a click. [Subscribe, free →](/newsletter/)[Run a deal in the calculator](/tools/deal-analysis-calculator/) Read next [ ![The Roth IRA Is the Most Wasted Account in Real Estate](https://images.unsplash.com/photo-1554224155-8d04cb21cd6c?w=800&q=80) Tax Strategies ### The Roth IRA Is the Most Wasted Account in Real Estate 10 min read → ](/blog/self-directed-roth-ira-real-estate-investors/)[ ![How to Avoid Depreciation Recapture When You Sell a Rental Property](https://images.unsplash.com/photo-1554224155-6726b3ff858f?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3w5MjA2ODF8MHwxfHNlYXJjaHwxfHxob3VzZSUyMGZvciUyMHNhbGUlMjBzaWduJTIweWFyZHxlbnwwfDB8fHwxNzgyOTIzODcyfDA&ixlib=rb-4.1.0&q=80&w=1080) Tax Strategies ### How to Avoid Depreciation Recapture When You Sell a Rental Property 12 min read → ](/blog/how-to-avoid-depreciation-recapture-when-you-sell/)[ ![Beyond the Basic 1031: Reverse Exchanges, DSTs, and the BRRRR-to-Exchange Playbook](https://images.unsplash.com/photo-1560184897-ae75f418493e?w=800&q=80) Tax Strategies ### Beyond the Basic 1031: Reverse Exchanges, DSTs, and the BRRRR-to-Exchange Playbook 11 min read → ](/blog/advanced-1031-exchange-strategies/) If you like this ## Read these next Hand-picked to go deeper on tax savings. 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