How the rich avoid paying taxes – the Augusta Rule LOOPHOLE
Summary
- I can bill out my house for $10,000 a day, and I'm going to show you how to do the same for tax-free income.
- There's something called the Augusta Rule that allows you to use your home to generate tax-free income and a tax deduction for your business.
- This is particularly useful for business owners who want to keep more of their income.
- While focusing on your business and creating value is crucial, it's also wise to look for ways to decrease tax inefficiencies.
- The Augusta Rule lets you rent your house to your business for events like employee meetings and member events.
- By upgrading my home with a professional studio setup, it has both increased in value and can be leased to my business at a fair market rate, similar to a professional studio's day rate.
- You're allowed to lease your home to your business for up to 14 days, and that income can be tax-free.
- I learned about this strategy a couple of years ago at a mastermind, and it has saved me the cost of attending.
- As an example, if you make $100,000 a year, you could potentially lease your home to your business for $500 to $1,000 a day. This could add up to a $14,000 tax-free income.
- Discuss the Augusta Rule with your CPA and they should be able to help you implement this strategy.
- These tips can help grow your business, increase your net worth, and achieve financial freedom.
Video
How To Take Action
I would suggest looking into the Augusta Rule to earn some tax-free cash. You can rent out your house to your business for events like meetings or small gatherings. But remember, you can only do it for up to 14 days a year.
So here's what you should do:
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Find out what a fair market rate is for renting a space like yours. Maybe it's $500 a day or it could be $1,000. It will depend on where you live and how nice your home is.
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Make sure you actually use your home for those business days. This can't just be pretend – it's got to be for real business stuff.
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You might want to improve parts of your house, like I did with my studio. This way, your home is worth more and you can charge more when you lease it to your business.
- Talk to your CPA about the Augusta Rule. They'll help you make sure you're doing everything right, so you can keep that money tax-free.
By doing these things, you can get some extra money and help your business at the same time. It's a smart move because you're using what you already have to earn more, without having to pay more taxes on it. This helps you grow your business, save money, and reach financial freedom faster. Just don't forget to get professional advice to do it right.
Quotes by Alex Hormozi
"The cool thing is, you can use your home and generate tax free income for you and a tax deduction for your business"
– Alex Hormozi
"If you have your house, you can rent your house to your business for employee meetings, member events, masterminds, or workshops"
– Alex Hormozi
"I can use that value to lease to my business at a higher rate than I normally would because a professional studio rents out per day would be five to ten thousand dollars a day"
– Alex Hormozi
"You can lease your home to yourself at a fair market rate of let's say 500 a day"
– Alex Hormozi
"That's 14,000 that you can write yourself as a tax free check and take a deduction off of your income from the business"
– Alex Hormozi
Full Transcript
you a quick video of how right now i can bill out my house for 10 000 a day and how you can do the exact same thing so by the end of this video you'll know step by step how you can get tax-free income by understanding the relationship between your home and your business so check this out so right now i've got my team at my house so this is my physical house you can say hey what's up dudes what's up recording stuff and um you can use something called the augusta rule which i'll break down in a couple seconds um on the on the screen so you can understand how it works but the cool thing is is you can use your home and generate tax free income for you and a tax deduction for your business so you're basically double dipping twice and it's with assets you already have so by the end of this video you're going to have that stuff and you're going to be able to use it in your own business so if you're a business owner listen up watch this video to the end you're going to love it and in the meantime click subscribe before i switch over to the other video all right welcome back my name is alex ramose i'm the owner of prestige labs jim launch allen and five other portfolio companies we do about 85 million a year and so the reason i made this channel is to help people who are broke and don't want to be anymore or people who have lots of money and want more of it and so that is the entire point of this and so let's rock and roll so one of the important pieces of you know making and increasing your net worth is making sure that you keep as much as you possibly can while you're generating income and i'm not saying you should be one of those people who's obsessed about it because a lot of times you should put more of your attention on your business creating value etc but there's obviously like ways that you can decrease your tax drag right your your tax inefficiencies i'd like to call them a lot of times this is just my overarching strategy that i would say with taxes is that unless you're moving to puerto rico it's not going to be a silver bullet there's lots of golden bbs lots of little ways that you can save here and there and so right now i want to give you one of the easiest tax strategies that you can use if you're a small business owner pretty much of any kind like i said earlier in the video it's called the augusta rule okay and so i'm going to try and explain this in 60 seconds it'll probably be a little bit longer but it will be worth every second of it all right so if you have your house you can rent your house to your business for employee meetings you can rent your house to your business for member events so if you have clients or customers who are flying into town or you want to hold an event or a small mastermind or a workshop or anything like that at your home you can lease it to your business on top of that if you do recording like i have i've built out i put some capital expense into my home which a increase the value of my house so i get increase in value two i can use that value to lease to my business at a higher rate than i normally would because a professional studio ran out per day would be five to ten thousand dollars a day and it cost me all in to make the studio uh 30 000 for this room and 50 000 for the other room which you'll probably see in other videos and so on it cost me about 80 000 but here's the cool part the industrial states that we can lease our home to our business for up to 14 days all right and so whatever my day rate is that would be fair market i can multiply that by 14 and i can write myself a check for that provided i've used my home for that period of time now the reason and when i heard about this i think it was two or three years ago i went to a mastermind and a guy was like hey i'm gonna save everybody the entire cost of this mastermind in the next five seconds and i was like okay i'm taking notes and i took the notes and i was like that was awesome and so in an effort to disseminate information to the masses for perspective if you're even making a hundred thousand dollars a year and you can lease your home to yourself at a fair market rate of let's say 500 a day or maybe a thousand dollars a day that's 14 000 that you can write yourself as a tax free check and take a deduction off of your income from the business all right easy strategy and if you have a cpa which hopefully you do just tell them it's the guest role and what you plan to do with it and they should be able to walk you through it from there and so hope you found video value in this video hopefully i can make you ten thousand twenty thousand hundred thousand dollars tax free just from watching um and i've got other videos other strategies about increasing how much you make growing your business increasing your net worth and ultimately getting the freedom you want so uh check out those videos click subscribe if you liked it if you didn't like it you can tell me that i suck and that's cool i'll i'll be okay either way all right lots of love keeping us we'll see you next video bye
