The Masters Tournament, held annually in Augusta, Georgia, is one of the premier events on the golf calendar — although this year, it will be played in November rather than April due to the COVID-19 pandemic.
The event also may be the inspiration for a federal tax rule that every short-term rental host should know.
Generally, rental property owners are required to include residential rental income in their federal income tax reporting. However, “The Masters Rule” states that “if you use a dwelling unit as a residence and rent it for fewer than 15 days … don't report any of the rental income and don't deduct any expenses as rental expenses.”
This means that if an owner rents their property out for fewer than 15 days a year, they don’t have to report that income for federal income tax purposes. The exception was reportedly created due to lobbying by homeowners in Augusta who were accustomed to renting out their homes only during the Masters Tournament once a year.
More: http://avlr.tax/lkh950BLvww
