Major events can create unique opportunities for homeowners. Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help generate tax-free income. A homeowner may rent their primary residence for up to 14 days each year without paying federal income taxes on the earnings. Rent it out for 15 days or longer and every dollar earned is taxable from the first day forward.
Atlanta is a host city for the 2026 FIFA® World Cup. This could be a wonderful opportunity for a homeowner to rent to a business or an individual, for tax-free income. In fact, this is what many Augusta, GA area residents do each year for the Masters® Golf Tournament.
Under IRC section 280A(g), qualifying rental income is excluded from gross income. Proper execution is critical:
- Charge fair market rent supported by comparable rentals.
- Maintain thorough documentation, including rental agreements, date of occupancy, and payment records.
Killingsworth Spencer in Roswell, GA, is dedicated to helping taxpayers in the Atlanta area to determine the best options for their particular circumstances. For more information on any tax matter or to schedule an appointment, please call us at 770-552-8286. Visit us at www.killingsworthspencerllc.com
Disclaimer: This post is for general information only and should not be taken as legal or financial advice.