💰 The Augusta Rule Explained: How the Wealthy Pay $0 in Taxes | The Money Game Livestream

0:01 You got that fixed, Jordan? Welcome to the live the live show, the live dance. Welcome to the game money show. Hey, listen. It's the first time live here. It's a new year for me. I want to start off with doing something new inside of our business, which was to go live for the first time. if you don't know us and you're new, man, we are here to help business owners in entrepreneurship world. And we own a family office here and we help business owners inside of many many things inside of it. But one of the big things is taxes and understanding how the tax world played. Not from a CPA. I do own a CPA firm, but I'm not a CPA.

0:35 I'm not your financial adviser. I'm an entrepreneur just like you that got tired of paying too much in taxes or let me give you another thing I got tired of. I got tired of every single year always going to zero. So I'd make a bunch of money throughout the year and then I go to zero and I'd have no money. I got tired of it. I was like running my head into a brick wall. You know what I like no matter what I did, it was like I never had any freaking money in my account because every year I try to go to negative so I didn't have to pay taxes and then I was always broke. So if that's you and you're on this call right now on this live with us, man, I appreciate it. We're going to go do and teach you a lot of cool stuff behind me right now on the board. If you can see it, I have all kinds everything up here is a different strategy that you can use that as entrepreneur we're never told.

1:15 And all of our CPAs just basically say stuff like spend more money in taxes or spend more money and and buy a car and we do these crazy things. But behind me are all the cool things that you can do inside of your business. And you can get do from HSAs to reps to a CRA to 529s, 122s, short-term rentals, family pension plan. This was a big one for me, man, growing up because a lot of you are probably like me that you wanted to you wanted to grow in business because you wanted to help your family and you wanted to help take care of your family and and then we don't even do a family pension plan. It's one of the coolest things because you can deduct the whole thing from your business and have your business literally take these giant deductions and while you're creating a family pension plan to help your family throughout the whole process inside of it. So, let me get the chat bar going here if you guys are live with me. there we go. Give me the chat bar. And if you guys can if you have any questions, if you have something that you want to know about taxes, you can hit me up, let me know. I'll try my best to try to answer as many of these as I can for you guys as we spend time here live.

2:20 I'm going to try to go live at least once a week with everybody and answer questions for you on side of it. So, anything that you guys want to understand more of on on taxes, again, just put me in the chat bar, hit me up, let me know, and I'm happy to help you guys on taxes as much as possible. Again, I'll help you in taxes, but not from a CPA to you. I'm helping you from an entrepreneur to an entrepreneur who understands this at a very very high level. understand the tax world. To be honest with you, look, I'll tell you something I probably shouldn't tell you, but hey, it's okay. I'll tell you. on my in my day-to-day life here in our office here I get paid what we have what's called private clients that are entrepreneurs high high net worth entrepreneurs they're doing 10 million 15 hundred million dollars a year I honestly get paid a quarter of a million dollars a day I do I got did it yesterday I do one of these clients every single week of my life I'm booked out and I do one client per day at $250,000 to restructure their entire businesses how they how the money flows how the structure flows inside of how what strategies they should use and and not to use inside of taxes.

3:28 One thing you got to understand inside of business and in taxes because we we we grew up playing this game of money and we grew up we we didn't know anything about business. My mom and dad were school teachers, right? And so we get in business but then we don't know exactly how to structure our business. So we kind of become like a sole proprietor for a little bit, right? And then we become we get into we get an LLC because someone tells us we got to have LLC and and then as we grow a little bit more we we get an escorp or an LLC tax as an escorp and and our business continues to grow. But our structure never grows. So if you really really understand how the wealthy play the game of wealth and taxes, you'd have to look at it through three things.

4:08 It's very simplified to understand this. Number one is what is your structure? Okay, so you're in business right now. You have a structure, a business structure. Okay, you have LLC, sle proprietorship, you have a S corp, you have a C corp. One question that you have to solve as a business owner if you want to be wealthy is what is your structure? Structure is going to determine a lot of stuff for you inside of your business. So, what happens is because we don't know anything, we kind of get stuck in a certain structure and we don't understand how that structure works or doesn't work. And so, we're we're kind of just always in this hamster wheel of always going to zero and not having money. So the very first thing you got to understand if you're in business and you're trying to really scale your business and you want to do what the wealthy people do first tell me about your structure. What is your business structure that you have right now? If you guys are live on the chat bars right there, type in what your business structure is. Okay? You got a LLC? Do you have a CC corp? Do you have an S corp? what what is your business structure? Just shoot it out in the text or the the chat bar there and I'll talk to you about them. But first is to understand what is that structure. Okay.

5:09 Once you can understand how you're supposed to be structured and then you got to understand what are the strategies that you can use inside of that structure. So what happens to most of us is we get inside a business not knowing anything about our structure and what happens is you you every year you're trying to play strategies but you're playing strategies with no structure. So think about it very simple. did structure first, then what what strategies can you use and then it moves into what what systems do you implement to make those things work for you. Behind me on the board is every type of badass strategy that you can use inside of taxes to save yourself money.

5:47 I'm going to go through each of these with you over this next 20 26 year here and I'll show you as an entrepreneur who has been an entrepreneur for over 20 20 plus years now how I've maximized to understand the game of wealth and part of it to understand money because listen at the end of the day the whole reason we went into business was to make money that's the truth of it what's weird is at the end of every year we get rid of all of it at the end we go in business to make money that's why you went into business Okay. And the way that I know that is because when if you look up your corporation docs right now, your corporation docs say that it says that you're a for-profit business.

6:25 You're a for-profit business, which means you're in business to make money. And it's okay. We go in business to make money. And then every year we make sure that we get rid of all of it. And the next year we say we're going to make money. And then next year we get rid of all of it. This this cycle has got to stop, man. If you're really trying to make money, then you got to slow down and understand actually what money is and how does how do you structure what you're trying to accomplish and what strategies do you guys want to do? So, here we're going to do every week or every time I go live with you guys, you guys can in the chat bar, name off a strategy that you guys want to know about behind me here. there's the accountable plan, HASS, 529, slow 401ks, how to hire your kids, there's slats, there's grats, there's R&D credits, there's captive insurance policies, all kinds of things, discount conversions, 122s, oil and gas. There are all kinds of different strategies that you guys can learn about of how you can legally keep your freaking money.

7:23 Here's the big thing you always got to understand to understand money and taxes. You'd have to understand taxes are the tax code. code, if you will, is written by the wealthy for the wealthy and then passed in Congress by the wealthy. That's how it works. It's it's not the tax code wasn't written by a group of poor people that got together and said, "How can we take these poor strategies and and and apply these out to everybody?" The tax code was written by the wealthy, for the wealthy, and then passed in Congress by wealthy. They call it lobbying. You can go look it up yourself. That's why these tax bills, when they push these things out every presidential cycle or whatever, those tax bills are like 9,000 freaking pages long. It's because there's a whole bunch of lobbying going on to pass certain things non-stop inside the tax bills.

8:09 Okay? So, to understand the game, just understand the game was written by the wealthy for the wealthy and passed in Congress by the wealthy. Our job is not to figure out how does it actually work? How can you actually use it? How can you use it to your advantage? I built this out in a game show manner for you guys. So you can take a look at it here behind me. So on this wheel exists all the different tax strategies that you guys should be using or understanding inside of your business.

8:34 Whether you're starting off in business or you're you're doing $100 million a year in business. Behind me are all the really cool strategies that wealthy business owners use constantly inside of their lives inside of business. So, I'm going to spin this wheel and we'll land on a certain one and then I'll take some time. I'll explain it to you so you can implement it inside your own business. I don't know if we're going to land on this one or not, but this one right here, super cool. Art donations. If if you don't know how art donations work, you should pay attention. Like, think think about this.

9:04 Do you ever do do you know that wealthy people use art somehow? Like you you know that they do, but you don't know how it actually works. and this game show right here that we go live every week on Tik Tok, Instagram, Facebook, and YouTube. And if you want a widescreen, so you can really see this if you're on Tik Tok or Facebook or Instagram. If you go to YouTube, YouTube has the widescreen so you can see this entire board that I'm on right here.

9:27 If you want a better kind of wide angle of it, just click over to YouTube and you can watch YouTube live and see the whole thing in a giant setting here. So, I through all these next weeks, I'm going to go live on here and I'm going to teach you for free how someone actually plays the game of the wealthy, how they play it. This is coming from someone who gets paid a quarter of a million dollars a day to help people restructure their entire business. This is the first time I've ever done this in 2026, or let me back up. This is the time I've done this ever live in my entire life. But it was one of my New Year's resolutions was to go live and help people understand how to play the game like the wealthy play the game. In my office here, we have close to probably a hundred employees in these walls right here that work with us. I'm the owner of Aspire Tour. If you ever seen Aspire come to town with Kevin Liry and Gary Vee and David Gogggins and Magic Johnson, I'm the owner of Aspire Tour as well. So, we'll spin the wheel here. if you guys can watch it, we'll spin the wheel. We'll land on something here and I'll teach you guys a really cool strategy you could use right now to make money in 2026 inside of your tax side here.

10:31 So, all right. So, we're going to teach this one right here. This one is to me probably the number one or number two best strategy that you can use in your taxes. Like, listen, if you are in business and you do not do what I'm about to teach you, it makes no sense to me. You could not find a way if you qualify to justify not doing what I'm about to teach you. There's no way. It's impossible because it's like free money and you're in business to make money.

11:05 So, if you're an escorp right now, like, say you're an LLC tax as an escorp or whatever, you take distributions. You should take you should be using the Augusta rule right here before you ever ever take a distribution. This is taxfree money straight to you. Okay? So, this would be for anybody that's in business a free way to make money at your business. come over here on the board real quick with me. So, if you just think about it when you look at kind of a business inside of what you got going on, think about it as this is your deduction side, okay? And this is your income side.

11:42 There's certain things that you have inside of your business that allow you to deduct certain things. So, you might get a deduction of $84 on this thing over here, or you get a deduction of for $3,287 over here, but you don't get income benefit on those things. You just get less deductions that your your business is paying. So, you can lower your overall ordinary business income. Inside of here, though, there's certain things that are inside the IRS. And here's a cool thing to think about this way. Think about the IRS as like instead of thinking about the IRS as like your enemy, okay? Think about the IRS as like they have an incentive program. some of you are in business that have like affiliate programs or use affiliate links or something like that.

12:26 Think about the IRS as like an affiliate program and they they have different things that you can do that if you'll help them do that, they will pay you money. That's how the IRS works. The IRS is not your enemy. The IRS is not some evil conglomerate that sits up on a hill that's trying to steal all your money from you. Just just think about the IRS. they're your business partner. Every one of us has a business partner. It's called IRS. And that business partner of yours called IRS will incentivize you to do certain things. This is why you'll find wealthy people owning a lot of real estate.

13:00 Okay? They may have a business like I have a business. It produces whatever 50 $60 million a year in revenue. But then I own a lot of real estate. Okay? So, I own real estate because the government says, "Hey, if you will help us provide housing for people, then we'll let you deduct money over here from your business." So, even though your business makes this, if you'll give us or help us provide housing for people over here and you buy an apartment complex or you buy a house or you buy a vacation home, we'll let you deduct that from this side over here and you get to own the asset. So to understand how IRS works, think about the IRS as an incentive program just like you maybe have one in in your business and you post links on social media and if you sell certain products on Vivore on Tik Tok or something, you get a a a commission for doing that. Think of the IRS as the same way and you'll crush it. That's all it is.

13:55 Okay? So in this example, the Augusta rule is is just that. The August rule is an incentive program that the IRS has given you that says, "Hey, if you'll if you'll rent your house out, if you'll rent your house out to 14 days to someone who needs a house, including a business, including your own business, then we'll let you keep all that money 100% taxree, and we'll let your business deduct that as well." So, this is a way that business owners use the Augusta rule to provide rentable space from their house to their own business.

14:32 Okay? Now, you don't have to use your own business. This this rule, this law, matter of fact, I believe the next slide, let me see here on the Augusta rule that we're going to teach. I believe the next slide here is the actual code. So, this is right here is the IRS code. Okay? So behind me is if you want to know like is what I'm saying true or not, then go freaking read the code yourself. It's right there. Okay, it's IRC 280A little letter G. Okay, go read the IRS code. So inside the code when they talk about the Augusta rule for you as you learn about the Augusta rule, it's just an incentive program just like all taxes are an incentive program. Okay, to understand this process, there's five things that we got to know to to really master the Augusta rule. There's five things. One, two, three, four, five. do these five things and you can get free money. It's that simple. It's that simple because there's certain things that when we deduct them over here, when we get a deduction of the August rule, so let's say the August rule gives me an a deduction of $34,000.

15:32 Okay, I get my business gets to deduct 34. This is my business right here. My business gets to deduct $34,000 out of it. So, it deducts $34,000. But unlike other deductions that you take, that's just a straight deduction, right? It also gets to pay me $34,000. And this is 100% taxfree money. That $34,000 that you just paid yourself in this example. I can't tell you what the exact number is.

16:03 Everybody's number is different. But the reason that the Augusta rule, we're in January right now for the love of God. If you're in business, start the Augusta rule this month because you get it for 14 days. You can use it. You can do them back to back. I'm going to show you how I do it. I've been doing it for years. I'm going to show you how I do it. All you have to do, listen to me. All you have to do as an entrepreneur, it's simple. Follow the law. That's it.

16:26 That's it. When you hear all these social media gurus up here and you see them on social media saying different I saw one today where a guyy's talking about he writes off his haircut. No, you're not. You're not. I mean, you might do that, but it's not true. Like, it's not true. Stop saying stuff to entrepreneurs that's not true because you think it is. Just read the tax code and follow the tax law. That's all you have to do. The reason it works is because the tax law, again, was written by the wealthy for the wealthy, passed in Congress by the wealthy. So, the name of the game is simply follow the law. As an entrepreneur, you don't have to go in the gray area. Stop saying that stuff, man. It's not true. Just follow the tax law. In this example, very simple process. You want to find the business deductions that allows you to deduct it from your business and keep it as profit on this side over here. There's basically seven of them. If I go to this board right here, there's seven ones right here that you can see. is a form that I have in our own company here.

17:26 There's seven things right here. I'll teach all seven of them throughout the throughout the times as I go live here that when a private client comes in paying $250,000, I start here and say, "Let's take the seven free money first. It's free. You get to deduct it. You're not going to pay tax. Your business gets to deduct it from itself and you're going to be able to keep this money." If you max out these right here, let me be clear. If you're in a wealthier position and you max these out right here, it's probably close to like $700,000 a year of tax deductible money for your business and you keep $700,000 in your pocket. Does that make sense to you? So the the worst deductions that you're taking are deductions that cost you money and you lose the money. That is not what you're looking for. So think about this way in the side of the the what I refer to as the contributors and the creators, right? the 99% and the 1%.

18:17 Think about it this way. What happens to those people is this side, they had this business and they make this money. The money comes in, they try to deduct it. When they deduct it, they don't keep it. Because they don't keep it, they don't have any money. Now, on this side, the wealthy side, the 1enters, the creators, they also create money. But when they go to deduct it, like this side deducts it, you're deducting on stuff that you lose the money. You don't have it anymore.

18:40 Therefore, you can't create wealth cuz you could find an investment that pays a million% interest a year. But you don't have any money because you deducted everything. So, 0 times a million% interest is still zero freaking dollars. You're the game that you're playing about money is a game that's broken down from poor people. It doesn't work inside of wealthy. They're creating the money. They're deducting it. When they deduct it, they get to keep it though because they keep this money where you deducted it and lost it. They deducted it and kept it. Now they can multiply this money and make money all for generations to come off of it while still deducting it. This is the difference between the contributors and the creators. There's two different groups of people, especially comes into business. They are not the same. Wealthy individuals that I work with at a high level at a family office are not the same as a as the 99% which is where I started from. I started again my mom and dad were school teachers and I just got tired of them and said I got to go figure this out. So what we want to do is first inside of our business man the first thing we want to do is figure out what are the seven things that we can do that we can deduct and keep this money because if we can keep it and deduct it which means we don't have to pay taxes on it now we can really really start making money inside of what we're doing. Okay. So go to my screen here with me. I'm gonna walk you through this to maximize this and all the other badass strategies out there for entrepreneurs that exist like for me and you that are by the law. Okay?

20:06 Again, stop the social media crap with people. Just follow the tax law. Okay? So, inside of here, there's five things inside of August rule that really we really need to understand to be able to play this game. Okay? I'm going to go to number one right here first. This would be number one side of it. Number one, the first thing in August rule is you only can do it for 14 days. It's important to understand this, okay?

20:27 It doesn't matter if the 14 days are all together, 14 days in a row, or if the 14 days are how I do it, one day a month for 12 months equals 12 days. I throw two parties, a Thanksgiving party and a Christmas party. That's 14 days. Listen to me. If you go over 14 days though, it no longer applies. And now you have to pay income taxes on those days you rent rented the property out. So, you're going to want to rent the property to your own business. This is how we're going to play the game. I don't want a stranger coming to my house no more than you want a stranger coming to your house. So, we're not going to rent it out to Joe Schmo on the street. We're going to rent it out to our own business. So, on one side, this is you personally. Here's the other side. This is your business. LLC, CC Corp, S Corp, whatever you got over here. This is your business. Okay? This is your personal house. Okay? So, this is you. This is your business. You're going to write a contract. If you think about this way, you're going to rent your house to this business. And that business is not you.

21:28 It's a separate person. It's a business. It's LLC. It's a separate. You're going to rent your house to this business over here. It just so happens that the business is your business. It could it could be any business, though. It could be a stranger if you want it to be. Obviously, why would we do that? We own a business. We're going to rent our house to our own business over here. Okay? We can rent our house to our business for business use for up to 14 days a year. Make sense? Two days at a time, three days at a time, five days, 14 days in a row. I don't care. If you want to know where this rule, this tax law kind of came from was from Augusta, Georgia. So, where this came from was Augusta, Georgia, because in Augusta, they were renting out during the the PJ tour, they would rent out their homes because there's a lot of hotels there and stuff. So they would rent out their homes to people and they were paying a lot of money because there was nowhere to stay. So they were renting out their homes. they would the homeowner would leave, they would basically a stranger would come in, rent their house or a company would come in and have a big company get together there and they would rent out their homes. And so they passed law said, "Okay, listen. If you rent your home out to someone, a business or a person and you and it's your personal home, you live there, but you rent it out to them because there's not hotels and places for them to stay. We'll let you take the income for up to 14 days and not pay any taxes on it whatsoever.

22:51 Okay? That's how it works. It's that simple. If you understand this, watch this. Here's how crazy this is. You don't even if you don't believe me, I dare you go talk to a freaking CPA. You don't even legally report the income off the Augusta rule on your tax return. There's not a pla there's not even a a space to put the Augusta rule. There's no line item on the thing that says on your taxes that says Augusta rule. The income is legally not every the IRS doesn't even make you report it as long as it's under number one 14 days. If it goes over 14 days, now you got to report it and now you got to pay taxes on it.

23:30 Okay. So step one, you can only rent your house to your business for for up to 14 days. My opinion to you because it's structure, its strategies, and its systems. For us as entrepreneurs, if you're on this training right now, you're live, you're an entrepreneur. If you're an entrepreneur, listen to me. For us to be able to succeed at the game of money, okay, we have to have the right structure. We have to have the right strategies that apply to that structure. And we have to have the right systems to make those things work. which is why I use the Augusta rule. One day a week I use the a month I use the Augusta rule. It's already planned out. Two days a year, Thanksgiving and Christmas, I throw a Thanksgiving party and a Christmas party. 14 days. I get ballpark around $34,000 deducted from my company and income to me. I'm not telling you that you're going to get 34,000 because I don't know your house. I don't know how it works, how big your house is, etc. I'm saying for me, I get around give or take 30 to $34,000 a year is what I get on Augusta rule. That's really like, if you think about it, like from an entrepreneur standpoint, it's really like 68 grand because I'm deducting 34,000 for my business and I'm paying myself 34,000 and that 34,000 is 100% taxree. If you like taxfree money in the chat bar, write the words taxree. Write the word taxree. This is the best money out there, man. Write the word taxfree because it's the greatest money you can possibly get inside of a business is when you can get taxfree money coming in. Write the words taxree in the chat bar for me right now. Taxfree.

25:08 Understand here as we move forward, we have 14 days here. Here's how I do this. Okay? You need to make sure on number two here, you need to make sure on number two that you get the business deductions for this. Okay? you get the business deductions. So, like I said over here on the graph over here, you get the reason we want to use this is because we get the business deductions and we get tax-free income on this side over here. It's the best of both worlds.

25:34 Number three, right here, you got to get fair market value. Now, this is a big one that you're going to have to do because let me explain this to you as a as a as a person, as an entrepreneur who deals with taxes all the time. All my clients and and so forth deal with help them dealing with their stuff. The biggest thing I can tell you with taxes is you have to document it. You have to document what you're doing because the IRS has a right, let's say as your business partner, just like say if me and you were business partners. If me and you were business partners, you would have a right to come and say, "Hey, I want to inspect the books." Or I would have a right as your business partner say, "Hey, I want to come and inspect the books that we have in our partnership." Okay? An audit is basically that your business partner, which is the freaking IRS, has came to you and said, "Hey, I want to inspect the books. There's some stuff that doesn't make sense. I want to inspect these books right here." It's the same thing as if if if me and your partners and you did it for me or me, I did it for you.

26:31 When they inspect the books on an audit, let's say, the number one thing that you have to have is documentation. Meaning, if you did the Augusta rule and you don't document how you did it, you have no documentation of what you did. All you did was pay yourself x amount of dollars from your business and then paid it to yourself and deducted it. Good freaking luck in an audit. Good freaking luck letting that one go through. So, my job, your job as an entrepreneur, when I say my job, my job as an entrepreneur, you're a business owner, your job is to do very simple. it is to simply document what you did. So if your business partner ever comes to you which is the IRS and they say hey we want to see what this is over here and it could be a multitude of things. In this example I'm saying Augusta rule for you to be able to show your business partner what you did. You need to make sure you have the documentation and one of the things you need is fair market value. So here's how I do this fair market value. Okay? You don't have to over complicate it. Let's just document it together. Okay? It's very simple. What I do every year, it's January, okay? Every January of my business, I go to the local hotels around where I live, and I get a quote to rent out a conference room from them. Now, this is this is different from a lot of people you've ever heard teach this, I promise. I I rent out a conference room because let's talk about those 12 days, those monthly days. I'm going to have a business meeting at my house. Okay? I want you to think about this. Am I really renting my whole house to my company? Meaning, if let's say I have some staff that comes over there, is my staff using the master bedroom? Am I taking my team members or whoever I'm I'm meeting with, am I taking them up to the master bathroom or my kids' bedrooms? I'm not doing any of that stuff. In my August rule, if you really think about it, when I do it, I look to myself and say, "Okay, I'm going to run a business meeting from this house.

28:28 which means I'm probably going to use a dining room table, like a conference room table. I'm going to use a dining room table. I'm probably going to use a living room because I need a like a TV to be able to AirPlay stuff and put reports and so forth on the screen. So, my dining room, my living room, I might have to have a bathroom because people might need to go to the bathroom while we're there. I'm going probably use the kitchen for snacks and drinks and the refrigerator and so forth. So, when I do the Augusta rule, I do it different for a lot of people because I'm trying to be as follow the law as much as I can while maxing out as much as I can. Okay? So, I go to the different hotels in my area and I say, "Hey, I need to rent out a conference room all day long. Let's say I need to rent out a private conference room that holds x amount of people inside of it, 8, 10 people, whatever it is, for the day. I need to make sure I have a screen in there digital screen I need inside of it. I need access access to a bathroom. And one big thing you ask for because you're going to ask for a quote. When you ask for this quote, ask for what's called the plus plus. So, this is where hotels sometimes will trick you. Let's say you might go and get a quote for the conference room and the conference room is like 700 bucks, whatever the number is for the day. But what they don't give you is what's called plus+ until afterwards. So, they have these things called plus+. There's actually thing called plus+ that hotels charge. So, I always ask for, hey, I need a quote.

29:49 If I were to rent out a conference room all day long from you, with a I need a screen in there, a digital screen, a TV of sorts I can use, and I need it for, I want the the quote plus plus all your is basically just saying all your expenses, like whatever you're going to charge me, I want to see the quote of everything upfront. Okay? They submit a quote to me, that they email to me. I have it documented. It happened in January 2026. I have one for 2025. I got one for 2024. I have them all saved. Okay, I have this quote.

30:19 Let's say this quote comes back for like $2,300 to rent this conference room all day long plus plus with my screen $2,300 inside of it. Okay, I then lower my invoice. This is how I do it. Okay, so let's say could I charge $2,300? Sure. Could I make an argument and I've have I seen CPAs make an argument that they could charge $2,500? Sure. I'm not going to split hairs and argue with you, but for me, I then go lower and I go to let's say an example to $2,000 because what I want to show is, god forbid I ever got audited, but if I did, and in an audit, they asked me about this. I want to say, hey, here's the quote that I got of why I charge $2,000. And matter of fact, that quote came in at $2,300. But to save my business money, because my business is renting the house, to save my business money, I charged my business $2,000. So, it was beneficial to my business because it my business saved $300 extra by not using the hotel and instead of using my house. That's how I do it. You can do it however you want to freaking do it. I'm not your CPA. I'm just telling you how I do it so that I have documented I document everything. I have a comp that I'm using inside of my files there that has the total price on it and then I went under it. Now, here's another thing. I then have a contract.

31:39 Okay? Some people don't do this. I do this. I have a onepage contract. It's very simple. If you want a copy of it, hit me in the DMs in my DMs that you want a copy of the contract, I'll give you my own freaking contract for free. It doesn't bother me. I have a simple onepage contract. Okay? In that contract, I I I write it's fill in the blanks, okay? It just simply says that I am renting my property out to this business over here for X amount of dollars on this date. It's just simple onepage agreement because think about it. If you were to rent out your house to not your business to another business, would you not have that in writing? Would you not have the terms in writing? Yeah, you would. Would you let Would you let someone rent your house and stay in it with no contract whatsoever? you just let them move in and say, "Yeah, well, when you get done, we'll settle it up at the end of the year." I don't think you would. So, I try to clearly follow this the the story of what the IRS is trying to tell me to do. So, I have a contract, 14 days, 14 contracts, one page. I fill it out. It has it that I'm renting the property to my business over here. It's that simple. Okay? Has the amount on it that I'm renting it for. The other thing that I do is I then write the check from my business to pay myself before I ever let the business stay. So again, this isn't you have to do it this way, but just think it through. The the IRS code doesn't spell out for you every last thing of how you're supposed to do everything. It tells you, hey, we have a incentive program. It's called the Augusta rule. You can use it. It's 14 days. You can rent the house out to your business inside of it. It's it's up to us to make sure that we as entrepreneurs follow that to what they mean by that instead of just saying, "Oh, I I do at the end of the year December and I just I just pay myself for 14 days throughout the year. I don't know what days they are. I don't know what I did at it. I don't know how much I I just charge."

33:28 Dude, if you get audited, good freaking luck. Okay. Inside of here, I have the quote. I have a onepage contract. I pay my from the business. I pay myself before the business rents the property because that's what I would do if I was doing it to someone else. So, I pay the my myself a check. That income on that example right there, say it's $2,000 is 100% taxfree income. So, that just simply means if I want to do that for which I do 12 days that year, it's $24,000 a year. 100% taxree. I still got two days left, but it's $24,000 a year taxree. My business deducted 24,000 because it paid rent for usage and I got $24,000 personally taxfree with no taxes owed whatsoever. Okay, this is how we do it. The last two days which are Christmas a Thanksgiving party and a Christmas party. And on those I use more of my house. I have people come over I give tours of my house. I'm using indooroutdoor barbecue areas. There's coat rooms that we have. I'm giving large tours. So, let's say that my house is 4,000 square ft. I don't I will go back to the hotel or different hotels.

34:36 I'll get a quote now for how much does a 3500 foot house or 3,300 foot house not house, sorry. How much does a 3,300 foot ballroom plus plus cost me to rent at this hotel. Let's say my house is 4,000. I'll lower it because even though I'm on a tour showing them the house, they're not necessarily using my master bathroom. I'm showing it to them. It's available, but no one's really using it, per se. But, so say my house is 4,000. I go conservative and say 3,300 or 3,000 square feet. I go to the hotel.

35:07 I get another quote. This isn't an email. It takes you five freaking minutes. I email the person and say, "I need a quote to rent a 3,000 foot ballroom for a Christmas party on or a Thanksgiving party and a Christmas party in in November and December." That's it. They send me the quote plus. Let's say those come back at $6,000. Okay. I lower it again. Say it's $5,000. I then charge $5,000 from my company to throw that the Thanksgiving party. I then charge $5,000 to throw the Christmas party at my house. Therefore, if you think about it, that's $2,000 per day for 12 days throughout the year.

35:44 $24,000. My company goes there. We have a meeting there at the property. Then for Thanksgiving and Christmas, 5,000 and 5,000, that's 10,000. That's $34,000 a year, give or take, is what I get deducted from my company, put into my personal pocket 100% taxfree. Listen, if if if you're in business, if you're in business and you're not using the Augusta rule, it's like you're saying, "I hate freaking money." It's a it's a oxymoron. They're the opposites of each other. You are in business to make money. The Augusta rule is an incentive program. This one right here, the Augusta rule is an incentive program from the IRS that says if you use me right here and use this, you can get tax-free money and deduct it so you pay less in taxes over here. All you need to do is file how the tax law is written.

36:37 And the cool thing is the tax law is written by the wealthy for the wealthy and passed in Congress by the wealthy. This right here, number three, fair market value. Number four on this process right here is this taxfree income. I've already explained this to you. It's 100% taxree income. There's not even a line item for you to report the income for yourself in the tax forms. You don't even have to report the 14 days up here of the income that you got. You don't even have to report that because it's 100% tax-free as long as it's under the 14 days. If you don't believe me, you think I thought to be a tree, freaking go read the tax code.

37:16 Just stop being a social media keyboard warrior and actually go pick up a book and read it and see what it says. This is how it works. You can either do it or not do it. It's free money though. You're in business to make money. The government IRS gave you an incentive. Go use it to your advantage. And last thing over here, number five, is document everything. Document everything you do. Why you I'm not saying you have to I'm not saying that the IRS has a code in the written in the code book of what you're supposed to go do, but I'm using logical common freaking sense and saying if I was the IRS and we're business partners, what would I want to be able to prove to my business partner of how I use this? So, I document everything. I have contracts, 14 contracts. I pay myself the check before my business uses it because that's how we do it. When my business is at the house, using the house over here, when my business is here, we have a onepage kind of like a meetings and minutes page and we go in there and we just write down what we talked about, what we discussed, what decisions were made, whatever it was, we just write it down, okay, inside of it. Why do I have to? No. Do I have to report that and and submit that with my taxes? No, I don't have to submit any of this paperwork with my taxes. However, if I ever get audited, I want three years from now, I want to be able to say, "Oh, 2023 when I use the tax, when I use the Augusta rule." Yeah, here it is. And it's in a folder on my computer. Side note here, whatever documentation you use, receipts that you keep, you put it say in a folder on your computer and then put that in the cloud. So, I have it on a hard drive and I have it in the cloud because the IRS does not care if your computer was stolen. If you lost your computer, it if it got a virus and ate everything on your computer, the IRS doesn't care. So, when you store something and document it, put on your computer hard drive and then put it in the iCloud so you can if something happens, you always have a copy of it here to document everything. It's a you have a quote of how much you're charging for the from the hotels and so how much you're charging for it that matches the square feet of your house that you're using. a contract between you and your company of of every single day when you're going to use it. Simple onepage agreement. It takes you three 30 seconds to fill it out because it's the same thing all 12 months. a check that you pay from the company to yourself taxfree to me. I I don't I pay 0% taxes on that money. And then a meetings and minutes showing what we covered and what we discussed there. You say, "Drew, can I use it if I don't have employees? What if I don't have employees? can I still use it?" Yes.

39:44 Yes, you can still use it. You say, "What if I'm a a sole proprietor? Can I still use it? Yes, you can still use it. What if I'm an escorp? Yes, you can use it. The only time that you can't really use the Augusta rule is if you don't own your house. So, the Augusta rule is not a business thing. It's a it's a personal home thing. Okay? So, you if you don't own the home. So, say you rent a home, you can't use that in the for the Augusta rule. It has to be your personal home that you're using for the Augusta rule. I'll tell you two really cool things that over time I've learned through all the tax attorneys that I work with and CPAs I work with. Two really cool caveats that are that are really cool for you especially as you grow. So we have a big business here.

40:23 And if you think about it like do I want to go take the time and have a meeting at my house to save money in the Guster rule? I do not. But but I'll tell you this one cool thing is nowhere nowhere nowhere in the tax code does it say that that I have to be there in that meeting. Nowhere does it say that. So for me I have staff that has a scheduled meeting there at my property and I'm not even there. I'm not even at the freaking property that we're using it which makes my life remember it goes back to structure strategies systems. I created a a system for me for my company that allows me to systemize how we use the Augusta rule and I'm not even there because legally nowhere to say that I have to be there. That's one thing that's really important. A second thing that's really really cool for some of you high net worth people on the call. I have two personal homes. So I have like a beach house that's mine that that I I live in and then I have a farmhouse that I also live in as well. So I have two personal houses. One's not a an investment property. Okay. So, these are not investment properties. These are homes that I live in. Okay? So, I have a beach house and I have a farm house and I can go back and forth. I have bedrooms at both of them, cars at both of them. I have two different houses.

41:39 What that means is I can use 14 days at the farm on the Augusta rule and I can use 14 days at my beach house on the Augusta rule. So, technically for me, I can have two different Augusta rules. 14 days here on this house, 14 days on this house over here, which means instead of $34,000, I'm really getting like $68,000 a year, 100% taxfree. 14 days of this one, 14 days of this one. Now, again, remember, I'm not telling you that your number is 34,000. I've seen people do the Augusta rule for 150 grand for one house a year. I can't tell you what your number is. It's based off of your area, the comps, the square footage, that stuff. I'm just using my own personal life as an example here. So, it's 34,000 give or take on this house, 34,000 give or take on this personal house, 68,70 grand a year of personal income. So, this is why I say before you ever take distributions, which you're going to have to pay 15 plus% taxes on when you take distributions, for the love of God, take the Augusta rule first. In my example, I'm showing you how I could pay myself, if you will, $68,000, 100% tax-free, and my business got a $68,000 $70,000 deduction that year as well. So, some questions that you guys may have is, can I can I use this for an investment property? Can if I own a rental property, can I use the Augusta rule? The answer is no. If you have an investment property, you can't use the Augusta rule on it. the Augusta rule you some people in the in the chat bar there there's all these feeds coming in whether on YouTube, Facebook, Tik Tok, they're all coming in on one. So you can't use it. Let's say that you are let's say that you have three businesses and you say can I use three businesses to do the the Augusta rule. It's not based off your business. It's based off of your personal house. So certain things in the tax code to understand it are based off different things. This incentive program that I'm telling you about right now, this incentive program is coming from the house itself that the IRS has given us. It's not coming from the it's not coming from the business yourself. So you could have one business but two personal houses and use the one business 14 days on this personal house and 14 days on this personal house here.

43:59 So you could have one business and two different Augusta rules, but you can't have three businesses and one personal house and use it three times. So the the think about it this way, the IRS incentive program called the Augusta rule is built for your personal home. You're just using the business as the tenant, if you will, for that home right there. So this right here is the Augusta rule. If you'll use the Augusta rule right now inside your life, this is 2026. If you're tired of running your business and not freaking having money at the end of the year and you're like, man, all I do is work, work, work, and then I go to zero. I don't have any money. Here's a way to fix that from happening. Use the Augusta rule. Again, I just showed you I I deducted $70,000ish dollars. I paid myself in theory $70,000 100% taxfree. If you do that with a distribution, you pay taxes on that money. It's better for you to first maximize all the tax-free stuff.

44:57 How many are there? There's seven of them. There's seven really cool badass tax strategies that we use here at our family office to help ourselves, if you will, plus our clients maximize these seven things right here, which are 100% taxdeductible and give the money to you versus give the money to someone else. Name of the game is you got to keep the money. And if you just take deductions that you lose the money, you're never going to have wealth through this process. So, this is one of the strategies that we use here at our family office. There are a ton a ton of strategies behind me. You can see on the big screen behind me here how many different strategies there are that exist that float around here that you guys can use. So I'm going to go live. I have taught this stuff for years and years and years inside of our family office and to very very high net worth clients. I'm going to go live in 2026 for the first time ever and I'm going to show you guys what the wealthy actually freaking do. No just how it freaking works from an entrepreneur to an entrepreneur. I'm going to show you how the game is played at a really, really, really cool level that you can use. Listen, if you want to know more about this, if you go to my link in my bio, you go to the link in the bio, I have like a probably a 30 to 40 minute deep dive session on other tax strategies right now as well. So, if you're like, well, I don't know if I'm going to see you live in the future, just go to that link in the bio. You're on Tik Tok, you're on YouTube, you're on Facebook, you're on Instagram, go to the link in my bio, click on it.

46:22 There'll be like a 30 minute, 40m minute and I teach you the five tax-free accounts. So there's five taxfree accounts. You can have it for free. It's it doesn't cost you anything. if you don't know where I'm going to go live again, I try to go live every Wednesday. This is my first time to go live ever. I'm going to try to go live every Wednesday and teach you a new strategy. But if you want the five best ones, five taxfree accounts, they're on my link in the bio. It's about a 30-minute training video. Go click on that link. Go watch them. Download the video if you want to save it. Five taxree accounts. Those five taxfree accounts have forever changed my life forever. Those are accounts, not strategies. Okay, five taxree accounts.

46:56 Okay, guys. I hope you enjoyed it. I hope you loved it. first time going live. I appreciate you guys being here. We went close to an hour live on here. This is the money money game show. And every week on Wednesdays, I'm going to go live and show you guys how the wealthy are actually really doing in taxes. Hope you guys enjoyed it. Go to my link in my bio, click that link, get the five taxfree accounts started right now. Love you guys. Thank you.