What Is "The Master’s Rule"?

A Little-Known Tax Strategy That Could Save You Thousands!

At Sun National Title Company, we're always looking for ways to bring more value to our clients—not just at the closing table, but in how you manage your real estate investment long after the ink has dried. That’s why today, we want to let you in on something many investors and business owners overlook: The Master’s Rule—also known by its IRS name, Section 280A(g) of the Internal Revenue Code.

It’s a perfectly legal, IRS-sanctioned tax strategy that can create tax-free income under the right circumstances. And no, it has nothing to do with Augusta National or golf—though the name “Master’s Rule” does come from the tournament.

Let’s break it down.

The Basics of Section 280A(g)

Section 280A(g) allows a homeowner to rent out their personal residence for up to 14 days per year without having to report that rental income on their federal tax return.

Yes, you read that right:Up to 14 days of tax-free rental income.

The income is 100% excluded from gross income and does not need to be reported—as long as the property is rented for 14 days or fewer during the year and used personally the rest of the time.

This is what’s known in tax and financial planning circles as The Master’s Rule—because many Augusta, GA residents famously rent their homes out for the Masters Golf Tournament every year, often earning tens of thousands tax-free.

How Does This Apply to You?

This strategy isn’t just for golf enthusiasts. Business owners and real estate investors across the country are using the Master’s Rule in creative and compliant ways—especially when they own a business and a home.

Here’s how it works:

✅ Own an S-Corp or LLC?

If you own a business entity, you can legitimately rent your personal residence to your business for events like:

Annual board meetings
Strategic planning retreats
Client or team dinners
Content creation days
Training sessions

As long as the meeting is real, documented, and necessary for the business—and you pay yourself a reasonable market rate for the use of your home—you can have the business deduct the rental expense. And you, the homeowner, get the rental income tax-free.

It’s a win-win:

The business gets a deduction
You get income that the IRS doesn’t touch

What You Need to Stay Compliant

Before you go setting up a business dinner in your kitchen, it’s important to follow a few best practices:

Documentation is key.Keep records of the meeting agenda, attendees, dates, and purpose.
Fair market rental value.Charge a rate consistent with what others would pay to rent your home for a similar event in your area. A CPA or real estate professional can help you determine this.
Limit it to 14 days.Any more than that, and you’ll lose the exemption—and may need to report all of the income.
Use your business entity.This strategy typically only works when your business is incorporated and paying you as a third party.
Consult your tax professional.As always, we recommend working with a CPA to make sure you’re applying the rule correctly and documenting everything properly.

Why It Matters to Sun National Title Clients

Whether you’re a business owner, real estate investor, or savvy homeowner, opportunities like this are exactly why working with a knowledgeable team matters. At Sun National Title, we go beyond closing to bring you insights and strategies that help you protect, preserve, and grow your wealth through real estate.

The Master’s Rule is just one example of how smart planning can lead to meaningful savings.

Ask your Tax Advisor if this strategy is right for you.

Want to Learn More?

If you're curious about how you can leverage strategies like this in your next real estate transaction—or you're just looking for a title company that thinks outside the box—we’d love to connect. Give us a call at 239-334-3321