Maximize Your Earnings by Utilizing the Augusta Rule for the 2025 NFL Draft
Photo Credits: Lauren Schram
As the 2025 NFL Draft approaches Green Bay, homeowners in the area have a unique opportunity to capitalize on this once-in-a-lifetime event. If you're considering renting out your home or property as a short-term rental, understanding the Augusta Rule and local regulations will be important for maximizing your earnings while staying compliant with the law.
The Augusta Rule
The rule is named after Augusta, Georgia, the home of the prestigious Masters Tournament — one of the four major championships in professional golf. The rule was originally enacted to benefit Augusta residents who rented out their homes during this event. Recognizing the brief and intense demand for accommodation during the tournament, legislators provided a tax incentive to homeowners who rented their homes for short durations.
The Augusta Rule, derived from IRS Section 280A(g), allows homeowners to rent their property for up to 14 days per year without reporting the rental income on their tax return. This provision could be particularly beneficial for Green Bay residents during the NFL Draft, as it provides a chance to earn tax-free income from short-term rentals. Before jumping on Airbnb or VRBO to list your home, understanding your city’s regulations is critical.
Proper Rental Guidelines
Review the Guidelines: The Wisconsin Administrative Code ATCP 72 defines rules, policies, and health regulations related to opening a property for short-term rentals, also known as a Tourist Rooming House (TRH).
Proper Licensing: To offer your residence up for a short-term rental, you must apply and obtain a license. Check with your local municipality for guidance on licensing and the application process.
Seller’s Permit: You need to obtain a seller’s permit from the Wisconsin Department of Revenue before listing your home. This permit is mandatory for any individual, partnership, corporation, or other organization that engages in retail sales, leases, or rentals of tangible personal property or taxable services within Wisconsin.
If in a full year (365 days) you anticipate earning less than $2,000, no permit is required. However, if you anticipate earning more than $2,000 with your short-term rental, a seller’s permit will be required.
Health Inspection: A health and safety inspection by the public department of health is mandatory before guests stay. Inspectors will ensure sleeping arrangements, water functionality, emergency contact information, and approved permits are in order. In the Green Bay area, contact Brown County Public Health at (920) 448-6400 to get started.
Considerations and Best Practices
While the Augusta Rule offers substantial benefits, homeowners should be aware of certain considerations and best practices to ensure compliance and maximize their potential earnings.
Accurate Recordkeeping - Keep meticulous records of rental periods to ensure they do not exceed the 14-day limit. This includes maintaining copies of rental agreements and payment receipts.
Insurance Coverage - Verify that the homeowner’s insurance policy covers short-term rentals, or consider purchasing additional coverage to protect against potential damages or liabilities.
Rental Agreements - Use written rental agreements to outline the terms and conditions of the rental, including the rental period, payment terms, and rules for tenants. This can help prevent disputes and ensure a smooth rental experience.
The Augusta Rule presents a unique opportunity for homeowners to earn tax-free income by renting out their homes for short durations, particularly during major sporting events. By understanding the provisions of the rule and adhering to best practices, homeowners can effectively capitalize on the demand for accommodation during these events while enjoying the significant tax benefits provided by the Augusta Rule.
If you are interested in offering your home as a short-term rental for the 2025 NFL Draft, start your journey by seeking legal guidance.
Visit Discover Green Bay’s NFL Draft website for FAQs and to learn more about connecting with a professional.
For questions or guidance on the Augusta Rule and its tax implications, connect with our Trusted Advisors.
Tony Powers, AIF®, CFP®, CRPS® Shareholder
Tony Powers, President of KerberRose Wealth Management, has more than 20 years of experience in the financial services industry. He specializes in helping private and public sector employers set-up and manage their employee retirement plans. Tony provides Fiduciary Services and Support, Plan Design Consultation, Plan Benchmarking and Financial Wellness.