The Section 280A 14-day rule is one that short-term-rental owners hear about often and understand rarely. Some owners think it means 14 free rental days. Others think it protects their deductions. Both are usually wrong. The number 14 shows up twice in Section 280A, and it does a different job each time. This is my plain-language read for Nashville STR owners. I cover what the rule actually says, how a separate personal-use test can quietly cap your deductions, and why you should talk to your CPA before you use your own rental for a long weekend. This is general information, not tax advice.
Want the full picture on STR taxes first? Start with my Nashville STR tax guide. This post is the deep dive on the one rule owners misread most.
What does the Section 280A 14-day rule actually say?
The rule itself is short. Rent a dwelling for fewer than 15 days in the year, and you generally do not report that rental income. In exchange, you cannot deduct the rental expenses either. People sometimes call this the “Augusta rule.”
It fits one situation well. You live in a home, you rent it for a handful of high-demand days, and you keep that income tax-free. A big event weekend is the classic example. But that is the opposite of an active STR. If you run a Nashville short-term rental, you almost certainly rent it far more than 14 days a year. That puts you outside this provision. So start by naming which world you are in. The under-15-day rule and the rules for an active STR are not the same conversation.
How is the personal-use “14 days or 10%” test different?
This is the version of the number that actually bites active owners. It is a separate test inside Section 280A. The threshold works like this. If your personal use tops the greater of 14 days or 10 percent of the days you rent at fair value, the property counts as a residence for the year. That label limits how much of your rental expenses you can deduct.
In practice, the trap is easy to fall into. You rent a Nashville property most of the year. You also stay in it yourself for a few weeks. Cross the line, and you can lose deductions you were counting on. I am describing the general structure here, not filing your return, so confirm the current-year figures with your CPA. The takeaway is simple. Personal use is not free. Every night you sleep in your own rental counts against a test that can reshape the whole year.
Why does this matter specifically for a Nashville STR owner?
Because Nashville’s event calendar makes personal use tempting in exactly the wrong way. It is easy to treat your downtown or East Nashville rental as a place to crash for a marquee weekend. String a few of those weekends together, and personal use can drift past the threshold before you notice.
There is also a local layer to weigh. Permit eligibility and the Metro short-term-rental rules under the BL2019-1633 framework decide whether a specific property can operate as an STR at all. That is separate from the 280A tax question. Still, the two interact in planning, which is why I keep the STR zoning and permits guide next to the tax material. When I evaluate a property with an investor, I flag both layers early. A deal that pencils on gross revenue can look very different once the tax treatment and the permit path are on the table.
How should an STR owner plan around the personal-use test?
Track personal-use nights the way you track revenue. Then decide the tradeoff on purpose, not by accident. The owners who get surprised are the ones who never counted their own stays until the return was already being prepared.
The owners who plan well do three things. They know their rental-day count. They know what the greater-of-14-days-or-10-percent threshold works out to for their property. And they decide in advance whether a personal weekend is worth its cost in lost deductions. That is a CPA conversation, and timing matters, because you cannot fix personal-use days after December 31.
Weighing rental income against your own use? My Airbnb versus long-term rental read compares the two paths on the investment side. And if you are still confirming whether a property can be an STR at all, the Nashville STR permit lookup is where that question starts. Either way, I would rather walk through your numbers with you and your tax advisor before you commit than after.
Looking at STR investments? Browse Nashville short-term-rental investment properties, and I will help you weigh the tax and permit picture on any one you are considering.
Frequently asked questions
What is the Section 280A 14-day rule?
Rent a dwelling for fewer than 15 days in a year, and you generally do not report the rental income and cannot deduct the rental expenses. It is sometimes called the Augusta rule. It fits owners who rent a personal residence briefly. It does not fit active short-term-rental operators, who rent far more than 14 days.
Does the 14-day rule apply to a full-time Nashville Airbnb?
Usually not. An active short-term rental is almost always rented more than 14 days a year. That places it outside the under-15-day provision. The rule that matters for active operators is the separate personal-use test.
What is the personal-use test under Section 280A?
If your personal use tops the greater of 14 days or 10 percent of the days you rent at fair value, the property is treated as a residence for the year. That limits your deductible rental expenses. Confirm the current-year figures with the IRS materials or your CPA.
How do I avoid tripping the personal-use threshold on my STR?
Track personal-use nights like you track revenue. Know what the greater-of-14-days-or-10-percent figure works out to for your property. Then decide deliberately whether a personal stay is worth its effect on the year’s deductions. You cannot fix it after year-end, so plan it with your tax advisor in advance.
Sources, methodology, and disclosure
Tax authority. Section 280A, the under-15-day (Augusta) rule, and the personal-use “greater of 14 days or 10 percent” test are described here as general federal tax concepts, drawn from IRS Topic No. 415 and IRS Publication 527. Thresholds and local rules change, so confirm each with the authoritative source and your CPA before relying on it.
Local STR eligibility. Nashville short-term-rental eligibility is governed by the Metro short-term-rental rules under the BL2019-1633 framework. Permit eligibility must be confirmed per specific address, and it is separate from the federal tax question. No specific property is asserted here to be STR-eligible.
Broker authority. 550-plus short-term-rental transactions and 25 years brokering Middle Tennessee real estate, including direct experience helping STR investors weigh tax treatment and permit eligibility alongside gross revenue.
Tax disclaimer. This post is general information and is not tax advice. I am a real estate broker, not a CPA or tax attorney. Consult your own qualified tax advisor about how Section 280A applies to your property and situation before acting.
Fair Housing. This post describes property and investment characteristics only. It does not reference, and must never be edited to reference, residents or the demographic composition of any area.
