What if I told you there’s a way to pull $10,000–$50,000 of tax-free money out of your business every year—without working harder, changing your business model, or hiring a single new person?

Sounds crazy, right? But it’s been hiding in plain sight inside the IRS code for over 50 years.

In this week’s episode of Capability Amplifier, I sit down with my friend Nathaniel Ely (co-founder of TheAugustaRule.com) to break down how the Augusta Rule works, why most business owners are leaving serious money on the table, and how to make sure you don’t miss out.

I’ll also share how I personally got a $40,000 tax-free check this year—and why I kicked myself when I realized I had missed out on hundreds of thousands of dollars in past years.

KEY INSIGHTS & TAKEAWAYS:

The Augusta Rule, Explained Simply
A 14-day tax loophole that allows business owners to rent their residence(s) to their business, tax-free.

Why Most CPAs Get It Wrong
80–90% of deductions fail because of sloppy documentation. If it’s not written down, it doesn’t exist.

Multiple Homes = Multiple Opportunities
Your vacation home, second home, or even your RV may qualify. The IRS defines “residence” more broadly than you think.

Real Case Studies
From a modest ranch in Ohio ($6,700 in savings) to multi-home entrepreneurs pulling in over $100K tax-free every year.

The 10 Conditions for Compliance
We cover the step-by-step checklist to keep everything bulletproof—and why this strategy only works if you follow the rules.

Done-For-You Solutions
Nathaniel’s team built software + services to make compliance effortless. They’re on a mission to put $1B back into entrepreneurs’ pockets by 2030.

TIME STAMPS:

[00:00:00] What Is the Augusta Rule?
Nathaniel explains how business owners can rent their home to their own company—14 days tax-free.

[00:01:56] My $40K Check (and $360K Mistake)
Mike shares his personal experience of saving—and losing—hundreds of thousands by not applying the rule earlier.

[00:04:14] Why It’s Called the Augusta Rule
The Masters golf tournament origins and how wealthy homeowners lobbied Congress to add this provision to the code.

[00:06:42] From Tax Bills to Tax Breakthroughs
Nathaniel’s personal journey of learning, failing, and finally systemizing the Augusta Rule.

[00:12:40] Case Study: The “Normie Home” in Ohio
How an average homeowner saves ~$6,700 annually with zero behavior change.

[00:16:21] Multiple Homes, Big Returns
How vacation homes, rentals, and even RVs qualify under the IRS definition of “residence.”

[00:18:37] Case Study: $126K in Tax-Free Rent
Three beach houses in Mexico equal $46K in real tax savings.

[00:20:00] Case Study: $224K Rent = $118K Cash Back
A California entrepreneur uses three properties to generate six-figure tax-free income.

[00:22:46] The 10 Conditions for Compliance
From rental agreements to meeting length, the checklist that makes it all audit-proof.

[00:32:11] How Easy Is It Really?
Why Nathaniel’s platform + EA support can make this a 5-minute-per-meeting task.

[00:38:28] Free Tools & Resources
The Augusta Rule calculator, deduction guide, and masterclass—all available at TheAugustaRule.com/save.

If you hate writing checks to the IRS, this is one of the biggest “money on the sidewalk” opportunities I’ve ever covered on this show.

If you want to see how much money you’re leaving on the table, head over to TheAugustaRule.com/save – you’ll get the free calculator, deduction guide, and tools to estimate your tax-free savings – and you can even book a free consultation with an Augusta Rule specialist.

Walter Kern

The AI-powered Podcast Player