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.
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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
"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
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"If you have your house, you can rent your house to your business for employee meetings, member events, masterminds, or workshops"
– Alex Hormozi
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"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
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"You can lease your home to yourself at a fair market rate of let's say 500 a day"
– Alex Hormozi
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"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
