It’s not that the strategy doesn’t work. It’s that most business owners don’t implement it properly, or at all.
In this video, John Hyre (tax attorney with 30 years experience) explains why even savvy entrepreneurs skip over one of the simplest ways to legally create tax-free income: the Augusta Rule.
The biggest issue? Discipline. The kind that wins audits.
You don’t need to master QuickBooks or memorize tax code. But if you want to rent your home to your business and keep that income tax-free – the right records matter.
We’ve built a done-for-you system to handle all of it:
Legally sound rental agreements
Proper documentation
CPA-ready reports
Audit protection
You delegate. We handle it. You save.
See what your business could be paying you, tax-free.
Transcript:
0:00
Why do you think more people don’t take
0:02
advantage of the rule?
0:04
Couple of reasons. One, and this is
0:06
common with entrepreneurs.
0:08
The number one thing entrepreneurs could
0:10
do to make their lives better in the
0:12
event of an audit is it’s it’s fairly
0:15
simple, but like a lot of things, for
0:16
example, working out’s very simple, but
0:18
not always very easy. The concept’s
0:20
simple. Go work out. Don’t eat too much.
0:22
Everyone knows how to lose weight,
0:23
right?
0:24
Doing it.
0:25
Eat eater calories. Exercise. If you
0:28
want to win a bunch of audits,
0:30
have Quickbooks or Zero or some
0:32
equivalent. Have a balance sheet, an
0:34
income statement for your business. Make
0:36
sure that no cash is ever spent. It’s
0:38
always a check or credit card or debit
0:39
card, something that links to a bank
0:41
statement. Make sure that all of it
0:42
always hits those statements. Always. In
0:44
other words, your bank account’s tied to
0:46
your books.
0:47
Yeah.
0:47
If you do that, 80% of the audit, I’m
0:50
not exaggerating, 80% of the audit is
0:52
over.
0:53
It’s the people who don’t do that that
0:55
lose deductions. and and delegate it. If
0:58
you don’t want to do it, that’s fine. We
1:00
can’t all do everything. We all have our
1:01
superpower and everything else we’re
1:02
pretty much not very good at.
1:04
Sure.
1:04
So, find someone else to do it. And it’s
1:05
it’s generally if the business is making
1:07
any money at all, it’s truly worth it.
1:09
Unlike working out, it’s not something
1:11
you even have to do yourself.
1:12
Yeah. Delegating working out. I’ve tried
1:13
that. That Yeah, good point. Didn’t work
1:16
out well for me.
