Want a simple, legal way to earn tax‑free income from your home in Pierce County? The Augusta Rule (IRC §280A(g)) lets you rent a dwelling you use as a residence for 14 days or fewer per year and exclude that income from federal taxes. Think Bonney Lake and Lake Tapps during summer weekends, concerts at White River Amphitheatre, or big regional events that bring visitors to Sumner, Buckley, Auburn, Milton, and Edgewood. Here’s a clear, local guide—plus practical steps—to use the rule without tripping over red tape.
Under IRC §280A(g), if you rent a dwelling you use as a residence (your main home or a vacation home you personally use) for fewer than 15 days in a calendar year, that rent isn’t included in your gross income. You also don’t report the activity on Schedule E and you can’t deduct rental expenses for those days. This is the core of the Augusta Rule—the nickname comes from short‑term rentals near the Masters Tournament in Augusta, Georgia, but the rule applies nationwide.
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Here is some more info from the IRS.
Short‑term demand isn’t just for Augusta. Pierce County draws crowds for the Washington State Fair in Puyallup (over a million visitors many years), the Daffodil Festival Grand Floral Parade that runs through Tacoma, Puyallup, Sumner, and Orting, plus White River Amphitheatre shows in the Auburn‑Enumclaw corridor. These moments create mini‑booms for Bonney Lake and Lake Tapps stays, especially for families and groups who want space, parking, and water access.
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Paragraph 3: Keep it boring—in a good way. Price your home at a fair‑market nightly rate (use comparable local listings), write a simple agreement, keep a calendar of nights, invoice your guest, and save payment records. Business owners sometimes rent their home to their own company for legitimate meetings (for ≤14 days total), but the rent still must be reasonable and the purpose business‑related—work with your CPA on documentation so your books and your tax return tell the same story.
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The Augusta Rule exempts federal income tax on up to 14 rental days, but state and local requirements still apply. In Washington, most stays under 30 days are considered transient lodging, which falls under retailing B&O and sales taxes (platforms like Airbnb collect/remit many of these). Several Pierce County cities require business licenses for any rental activity, including home‑based rentals. Check your specific city before you list.
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Market conditions help set your rate and your expectations. As of September 2025, Pierce County’s median sale price was about $565,000 with a median 29 days on market—cooler than the frenzy years, but still active. If you price a well‑located Bonney Lake or Lake Tapps home competitively for event weekends or summer, 7–14 tax‑free days can offset a chunk of property taxes or HOA dues.
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Buyers: If you’re shopping for homes for sale in Bonney Lake or eyeing Lake Tapps waterfront homes, factor in the Augusta Rule’s 14‑day opportunity when you compare neighborhoods and HOA rules. Sellers: If your home sits near demand drivers—lakes, parks, amphitheatre routes, or parade stops—highlight short‑term rental potential (within local rules) to broaden your buyer pool. For everyone: the goal is smart, compliant income that complements your long‑term wealth plan in the Pierce County market.
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Curious how to position your home—or find one with strong short‑term demand—in Bonney Lake, Lake Tapps, Sumner, Buckley, Auburn, Milton, or Edgewood? Let’s tailor a plan. Visit www.onsiteregroup.com/business-connect or call 253‑441‑9764 to talk with André & Cindie Bohall at OnSite Real Estate Group.
