Turn your home into a lucrative rental during PGA tournaments with the Augusta Rule. Discover the financial advantages today!
Imagine a lush green golf course right next to your house – a serene backdrop for both business meetings and leisure. But there’s a catch: the constant stream of visitors during major PGA tournaments causing traffic nightmares and otherwise disrupting your quiet neighborhood for a week in the middle of June. However, there is an opportunity to get up and down for par with a tax-free financial gain.
Enter the “Augusta Rule.” IRS Code Section 280A(g) allows you, as an Oakmont resident, to rent your personal residence for up to 14 days annually without reporting the rental revenue as income on your personal tax return. How it works: you can rent your home, whether it’s your primary residence or a vacation home (as long as it is only used as a personal residence) for up to 14 days in a calendar year. Although there is no limit on how much you can charge to rent your home, the rental rate needs to be in line with the rest of the market in that location and for those dates. Any expenses incurred as part of this arrangement would not be able to be reported as a deduction; however, you will still be able to report your Schedule A mortgage interest and property tax deductions, as usual.
Several online listing sites already show many properties available for rent during the 2025 U.S. Open in Oakmont. Homeowners near the golf course can rent to both golf fans and businesses looking for accommodations for the week, either as lodging or as a hospitality headquarters for entertaining customers. So, take advantage of this “breakfast ball” of a tax break and go on vacation for a week fully paid for by your tax-free rental income or pay your mortgage bill for the entire year. The 2025 U.S. Open at Oakmont is June 12-15, 2025.
About Schneider Downs Tax Services
Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.
To learn more, visit our dedicated Tax Services page.
