The Augusta Rule is a great way to get some money out of the agency and into your pocket
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- Hey everybody! Drew McLellan here from Agency Management Institute. This week, I am coming to you from Brown Bluff, Antarctica. And yes, I am cold. I want to talk to you this week about a tax law called the Augusta Rule. It was started back in Augusta, Georgia when people who lived in Augusta rented their homes for people who wanted to come to the Masters Golf Tournament. And the IRS created a specific rule for the Augusta audience, which now has spread to all of us, which basically says that anyone can rent their home for up to 14 days, tax-free. So what does that mean for you? If you have a staff meeting, if you have a retreat, a brainstorming session, if you have clients stay in your home, if you do anything at your house, you can charge yourself the equivalent of what a hotel meeting space would cost, what food and beverage at a hotel would cost. Your agency writes you a check to you personally, and you do not have to declare that on your taxes. So the business gets the tax deduction, and you get the income absolutely tax-free. So up to 14 days, if you're curious about it, Google the Augusta Rule or talk to your CPA, but it is a great way to get some money out of the agency and into your pocket. And I'm going to keep this one short because it's freezing out here. I'll see you next week.