A 100% Legal Way To Earn Thousands In Tax-Free Income

I bet you’ve never heard of this…

It’s a special government loophole… that allows you to earn extra cash, totally tax-free. It’s 100% legal and simple to use. It can even help you pay for a dream vacation home.

This loophole is not for everyone. But if you qualify, you should start collecting this income right away.

I call this loophole the “Masters exemption.”

That’s because every year, visitors flock to Augusta, Georgia for the Masters Golf Tournament. And many years ago, the wealthy course owners lobbied their buddies in Washington, asking for special “consideration”…

In exchange for the hospitality of the locals, they convinced the lawmakers to allow them to “hide” two weeks of rental income from the IRS

The best part is the loophole isn’t just for landowners in Augusta. The IRS allows anyone to rent their primary residence or a vacation home anywhere in the country for up to 14 days each year… and pay no taxes on the rental income.

(NOTE: If it’s your vacation home, you do need to spend at least 14 days per year there to prove it’s not just a rental property.)

Plus, there’s NO limit on the amount you can charge and collect tax-free.

I’ve personally taken advantage of the “Masters exemption” for the last decade.

I own a home within earshot of the course where they hold the Masters. Every year, I rent it for the week (or two) of the tournament. Every year, I recoup nearly four months of mortgage payments and property taxes, all tax-free.

It’s simple to find renters, too… Today, I rely on word of mouth to find my tenants. But I have used Craigslist and the local papers. (The Masters Tournament has a section on its website where you can post your rental listing… although it takes 7% of your income if you do it through them.)

(You can also do this safely and easily nowadays through Airbnb. If you’re not familiar with Airbnb, think of it as the “Uber” for home and room rentals)

First, I conduct an informal personal background check. I contact their office, their landlord (if they have one), and any other references they provide. And I’ve never really had a problem. One tenant smoked in the house… but I charged him around $500 for cleaning costs. He paid the charge, no questions asked.

So if you own a rental or vacation property anywhere in the U.S., you should immediately consider taking advantage of the “Masters exemption” yourself.

It’s especially easy if you’re in a city that’s hosting a Super Bowl, World Series, or any sort of professional championship. But wherever your home is… and whatever the season is… here’s an opportunity for you to capture easy, tax-free income.

That’s true even if you already rent your property out the rest of the year… You just need to have a clause (like I do) that requires your tenants to vacate the property during the “high season.” This is how many of the homeowners in Augusta do it.

Obviously, this loophole won’t work for everyone. But if you have a second home, the Masters exemption is a low-risk way to put it to work for you.

You can earn safe, tax-free income. And you can potentially make enough money every year to pay for the cash costs and upkeep on your own home.

I do it every year. And you can do it, too.

Here’s to our health, wealth, and a great retirement,

Dr. David Eifrig

P.S. This is just one of the many ways you can earn tax-free income. For instance, in my Big Book of Retirement Secrets I share one little-known investment outside of the stock market where you can earn safe double-digit yields that are virtually guaranteed by the government.  Learn more about the book here. (This does not link to a long video)

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About the Author: Daily Crux

  • Joe Cabot

    Only when the income tax is at 0% should we be satisfied.

  • Joe Cabot

    You weren’t asked to explain the tax code. You were asked to tell what you ideal tax system would be. You filibustered the answer.

  • JohnDille

    THAT IS THE WHOLE POINT OF THE STORY… THE RICH HAVE BECOME OBSCENELY AND DANGEROUSLY RICH, IN LARGE MEASURE BECAUSE THEIR TAXES HAVE BEEN SO MUCH MUCH MUCH LOWER THAN THEY WERE BACK BEFORE REAGAN HANDED THEM THE KEYS TO THE FEDERAL TREASURY!!! ADD IUN ALL THE OTHER GOODIES THAT REPUBLICANS HAVE GIVEN TO THE RICH… AND ALL OF A SUDDEN,,, WE ARE LAYING THE FOUNDATIONS FOR TOMORROWS FUEDAL AMERICA… WHERE… JUST LIKE IN FEUDAL EUROPE AND FEUDAL ASIA… THE RELATIVELY FEW RICH LITEREALLY OWNED AND CONTROLLED EVERYTHING… AND EVERYONE! BUT YOU RIGHT WINGERS ARE T GOD AWFUL STUPID TO SEE THAT REPUBLICANS ARE LAYING THE FOUNDATIONS FOR EXACTLY THAT SORT OF WORLD OF TOMORROW… RIGHT HERE IN THE UNITED BILLIONAIRE STATES OF CORPORATE AMERICA!!!

  • JohnDille

    AND YOU ARE TOO STUPID TO UNDERSTAND MY RESPONSE TO YOUR COMMENT ABOUT THAT??? THERE IS NOTHING SHORT AND SIMPLE ABOUT THE US TAX CODE… JUST AS THERE IS NOTHING SHORT AND SIMPLE ABOUT WORLD HISTORY… UNLESS YOU ARE READING THE RIGHT WING VERSION OF WORLD HISTORY… IN WHICH CASE 3 SENTENCES OUGHT TO JUST ABOUT COVER THE WHOLE STORY!!!

  • Joe Cabot

    Good for those 20. They pay enough in taxes. Keep your grubby mitts off of the rest.

  • Joe Cabot

    You weren’t asked for the history of the world. Just a simple tax question. Which, in typical fashion, you filibustered.

  • JohnDille

    HEY, JOE… TELL US THE COMPLETE HISTORY OF THE WORLD IN 3 SENTENCES OR LESS!!! THATS SOMETHING ANY 1ST GRADER COULD DO!!! WHY COULDN’T YOU DO THAT!!!

  • JohnDille

    America’s 20 wealthiest people — a group that could fit in one Gulfstream G650
    jet — are now worth $732 billion, which means they have more wealth than the 152
    million people who make up the least wealthy 50% of U.S. households, according
    to a report released Wednesday by the Institute for Policy Studies. What’s more,
    the “Forbes 400” wealthiest individuals in the U.S. now have a net worth of
    $2.34 trillion.

    “There is a growing concentration of wealth in fewer and fewer hands,” says Josh
    Hoxie, who heads up the Project on Opportunity and Taxation at the institute.

    The report’s co-authors — Hoxie and Chuck Collins, a senior scholar at the
    Institute for Policy Studies, a Washington, D.C.-based think tank that focuses
    on economics, national security and human rights — propose several ways to close
    the gap between America’s ultra-wealthy and, well, everyone else. These policies
    include closing offshore tax havens and loopholes for the ultra-wealthy in the
    tax code that the wealthy exploit to hide their wealth. One of the biggest
    billionaire loopholes is the Grantor Retained Annuity Trust, which enable very
    wealthy families to pay little if any estate and gift tax on estates worth
    billions of dollars, Hoxie says. “There’s no reason why it should be used as a
    tax evasion mechanism,” he says. “It’s an unintended result of our tax code.” He
    also proposes a direct tax on wealth to generate trillions of dollars in new
    revenue.

    A 1% tax on the wealthiest 1% of Americans would raise $2.6 trillion over 10
    years, more than the federal government now spends on education and
    environmental protection combined, the report says, and a 1% tax exclusively on
    the Forbes 400 would raise $234 billion, which is more than the government
    spends on both its Head Start program, which provides early childhood education
    to over 800,000 low-income children, and the Women, Infant, and Children (WIC)
    program that provides nutrition assistance to over half of all infants born in
    the U.S.

    “Interest in addressing inequality has increased in recent years, but Congress
    hasn’t introduced a wealth tax yet,” Hoxie says. (The report used data from the
    Forbes 400, the U.S. Federal Reserve Survey of Consumer Finance and the U.S.
    Census.)

    The middle class is still recovering from the Great Recession. The net worth of
    American families — that is, the difference between the values of their assets,
    including homes and investments, and liabilities — hovers at around $81,400,
    still a long way off the $135,700 in 2007, according to a report released last
    January by the nonprofit think tank Pew Research Center in Washington, D.C.

    Meanwhile, the 2015 Forbes Billionaires List names 1,826 billionaires with an
    aggregate net worth of $7.05 trillion, with 400 new billionaires joining the
    elite club this year, which increased their collective net worth by nearly $2
    trillion in two years.

  • Joe Cabot

    Uh, you were asked to do this in three sentences or fewer. And you took that to mean three rambling, babbling paragraphs? You are confused. No wonder everything makes you mad – you can’t keep up.

  • Joe Cabot

    Saw the headline and knew absolutely that you would be here yelling and screaming about the inequity of it all. It’s almost as if you amusingly believe that government bureaucrats should have first crack at everyone’s paycheck.

  • JohnDille

    THIRD AND FINAL PART…
    I HAD A CLASS ON ENVIRONMENTAL REGULATIONS WAY BACK IN MY COLLEGE DAYS, AND THE PROFESSOR WAS ONE SHARP AND VERY PERCEPTIVE COOKIE. FIRST THING HE DID WAS TO MAKE IT CRYSTAL CLEAR TO ALL HIS STUDENTS JUST HOW COMPLICATED ALL THE ENVIRONMENTALLY RELATED REGULATIONS WERE… WHICH EVEN BACK THEN BEFORE REPUBLICNS REALLY MADE A MESS OF THINGS… WAS VERY COMPLEX AND VOLUMINOUS. AND ONCE HE GOT EVERYONE INTO COMPLAINING HOW COMPLICATED ALL THAT STUFF WAS…. HE DROPPED HIS BOMB. HE HAD US WRITE REGULATIONS THAT WOULD DEAL WITH CERTAIN VERY BASIC ENVIRONMENTAL RULES… KEEPING THE WATER AND AIR CLEAN, FOR EXAMPLES. THEN… FOR MOST OF THAT SEMESTER… HE WOULD HAVE US PRESENT OUR SIMPLE REGULATIONS… AND THEN EVERYONE WOULD GANG UP ON THE PRESENTER, AND RIP HIS REGULATIONS TO SHREDS… BY FINDING EXAMPLES OF THINGS THAT THE SIMPLE REGULATIONS WOULD NOT COVER. FOR EXAMPLE… SIMPLY SAYING…. YOU SHALL NOT DUMP POLLUTANTS IN THE RIVER… WHICH SEEMS SIMPLE AND STRAIGHT FORWARD ENOUGH… GOT PERVERTED AND PERVERTED AND PERVERTED BY STUDENTS POINTING OUT ALL KINDS OF WAYS AROUND THOSE REGULATIONS. SO, STUDENTS WOULD HAVE TO WRITE MORE REGULATIONS TO COVER THE LOOPHOLES…. AND PRETTY SOON.. THAT ONE SIMPLE REGULATION HAD ADD ONS AND CLARIFICATIONS AND SUB REGULATIONS THAT WOULD HAVE FILLED A VERY LARGE BOOK! AND THE WHOLE POINT OF THAT EXERCISE WAS TO SHOW JUST WHAT RICH PEOPLE AND GIANT CORPORATIONS AND THEIR LWAYERS CAN DO TO PERVERT EVEN THE MOST CLEARLY WRITTEN REGULATIONS POSSIBLE. THE LOOPHOLES THEY CAN FIND OR CREATE ARE ENDLESS…. AND THE ONLY WAY… THEY ONLY WAY… THE ONLY WAY TO BLOCK ALL THOSE WHO CAN USE LOOPHOLES TO DO WHATEVER THEY FEEL LIKE DOING… IS TO KEEP ADDING MORE AND MORE AND MORE REGULATIONS…. AND EVER MORE TAX RULES AND LAWS! SO… EVEN IF CONGRESS HAD THE POLITICAL WILL TO TOTALLY REWRITE AND VASTLY SIMPLIFY THE TAX CODE, IT WOULD GET TOTALLY PERVERTED WITHIN A DECADE!!! UNLESS THEY IMPOSED SOME SET OF RULES THAT MADE THOSE PERVERSIONS TOTALLY IMPOSSIBLE… IN WHICH CASE REPUBLICANS AND OTHER RIGHT WINGERS WOULD CRY DICTATORSHIP… LIKE THEY ALWAYS DO WHEN THE GOVERNMENT TRIES TO TREAT EVERYONE…EVEN THE RICH… FAIRLY AND EVEN HANDEDLY!!!

  • JohnDille

    BUT… YOU WERE ASKING ABOUT HOW I WOULD GREATLY SIMPLIFY THE TAX SYSTEM…. I SHOULD NOTE THAT I FIRST STARTED DOING INCOME TAXES WAY BACK WHEN I WAS IN THE 4TH GRADE… ABOUT 11 OR 12 YEARS OLD… AND HAVE DONE MY OWN TAXES… AND TAXES FOR HUNDREDS OF OTHER PEOPLE… EVERY YEAR SINCE THEN. AND BACK WHEN I FIRST STARTED, IT WOULD TAKE ME… A 4TH GRADER… MAYBE A HALF HOUR TO DO THE FAMILY TAXES… ANDMOST OF THAT WAS JUST TO RECHECK EVERYTHING, BECAUSE IF I MADE A MISTAKE, I WOULD GET THE HADES BEAT OUT OF ME!!! NOW… IT OFTEN TAKES ME 40 TO 50 HOURS IN TOTAL TO DO MY TAXES…. MOSTLY BECAUSE I AM AN ACTVE STOCK AND OPTIONS TRADER, AND I HAVE TO DOCMENT ALL THOSE TRADES FOR TAX PURPOSES. I ALSO HAVE SPENT A FEW TENS OF HOURS PERUSING THROUGH THE TAX CODE…MANY DOZENS OF BOOKS FULL OF ALL KINDS OF LAWS AND REGULATIONS AND EXPLANATIONS OF TAX RULINGS AND THAT SORT OF THING. I AM NO EXPERT ABOUT TAX LAWS AND SUCH… BUT IT IS VERY OBVIOUS THAT THE TAX CODE IS WAY WAY WAY TOO COMPLICATED… AND MOST OF THOSE COMPLICATIONS EXIST IN ORDER TO GIVE LOOPHOLES TO THE RICH… BUT ALSO TO KEEP THE RICH FROM FINDING WAYS AROUND EVEN THE MOST BASIC TAX LAWS.
    SO… HOW WOULD I SIMPLIFY THE TAX CODE??? I WOULD HAVE THEM WRITE A SMALL BOOK DEFINING… EXACTLY AND PRECISELY… JUST WHAT INCOME IS…. NO SMALL FEAT GIVEN THAT MOST INCOME EARNED BY UPPER INCOME PEOPLE FALLS INTO GREY AREAS THAT MAY… OR MAY NOT… BE LEGITIMATELY DEFINED AS INCOME. ONCE YOU HAVE DEFINED ALL FORMS OF INCOME… AND HAVE EXPLAINED ALL THE NUANCES OF INCOME… AND HAVE DESCRIBED ALL FORMS OF INCOME SO THAT NO ONE CAN POSSIBLY CHEAT BY SIMPLY DEFINING INCOME AS SOMETHIING OTHER THAN INCOME… WHICH THE RICH AND THEIR LAWYERS SPEND HUGE AMOUNTS OF TIME AND MONEY AND EFFORT IN DOING… THEN I WOULD SIMPLY REQUIRE ANYONE EARNING MORE THAN SOME SMALL AMOUNT OF INCOME… SAY $ 1,000 A YEAR… TO FILE A RETURN. THEY WOULD LIST ALL FORMS OF INCOME, AND ADD ALL THAT INCOME UP. ALL FILERS WOULD TEHEN BE ALLOWED TO DEDUCT A STANDARD DEDUCTION PLUS A PERSONAL EXEMPTION FOR EACH PERSON IN THAT HOUSEHOLD, THE TOTAL OF WHICH WOULD BE ROUGHLY THE TOTAL ANNUAL BASIC COST OF MAINTAINING A HOUSEHOLD OF THAT SIZE. AFTER SUBTRACTING THOSE EXEMPTIONS AND STANDARD DEDUCTION… NO ITEMIZED DEDUTIONS… THE RESULT WOULD BE TAXABLE INCOME… WHICH WOULD BE TAXED AT A PROGRESSIVE RATE… MUCH AS IT WAS BACK IN THE 1950S AND 1960’S! THE HIGHEST MARGINAL RATE WOULD BE NO WHERE NEAR AS HIGH AS THOSE RATES WERE FOR MUCH OF THE FIRST 65 OR SO YEARS OF THE TAX SYSTEM…. IE… 77 TO 91% ON ALL INCOME OVER $ 200,000… LIKE IT AS FOR SEVERAL DECADES… FOROVER 30 YEARS… BUT THE TOP RATE WOULD STILL BE FAIRLY HIGH… SAY AT LEAST 40% ON ALL INCOME OVER SAY… $ 1 MILLION DOLLARS. I WOULD ALLOW SOME INCOME AVERAGING FOR THOSE WHO HAVE HIGHLY VARIABLE INCOMES, AND A FEW OTHER ADD ONS LIKE THAT… BUT MOSTLY, I WOULD CRETE A TAX CODE THAT IS NO LONGER THAN THE BIBLE… AND THAT IS STRAIGHT FORWARD BECAUSE IT FLAT OUT BANS ANYTHING THAT IS NOT STRAIGHT FORWARD. THOSE WHO COMPLAIN ABOUT HOW COMPLEX AND NONSENSE FILLED THE US TAX CODE IS… ARE ABSOLUTELY RIGHT… BUT THE REASON THAT THE TAX CODE IS SO COMPLICATED IS… BECAUSE THE COMPLAINERS HAVE FORCED TH GOVERNMENT TO MAKE THE TAX CODE SO COMPLICATED, TO KEEP RICH FOLKS AND OTHER CHEATS FROM ROBBING THE GOVERNMENT AND THE AMERICAN PEOPLE BLIND!

  • JohnDille

    TO AVOID HAVING THIS CENSORED… I GUESS I HAVE TO DUMB THIS PRETTY GOOD ESSAY DOWN A LOT… AND ALSO BREAK IT INTO SMALLER PEICES!!! RIGHT WINGERS CAN’T HAVED LIBERALS SOUNDING LIKE THEY KNOW WHAT THEY ARE TALKING ABOUT, I GUESS… THEY ARE BLOCKING THE ORIGINAL ESSAY FOR.. WHO KNOWS WHAT REASONS… SO… HERE IN SEVERAL PARTS… IS A PRETTY GOOD LITTLE ESSAY…

    Hold on, this is waiting to be approved by The Trading Report.

    WELLL… IT JUST SO HAPPENS THAT I AM RIGHT IN THE MIDDLE OF STUDYING THE RESULTS OF THE FEDERAL INCOME TAX SYSTEM GOING BACK THE FULL 100 YEARS OF ITS HISTORY. ALL I AM REALLY DOING IS TRYING TO GET A GOOD FEEL FOR THE DISTRIBUTIONS OF INCOME OVER THAT TIME… AND TRYING TO DETERMINE HOW MUCH THE TAXES WERE VERSUS WHAT THEY ARE TODAY, AND ALL THAT SORT OF THING. AND SEVERAL THINGS JUMP OUT AT YOU IF YOU LOOK AT THE NUMBERS. FIRST OF ALL… THE POVERTY OF THE UNITED STATES AFTER 70 YEARS OF REPUBLICAN/ RIGHT WING CONSERVATIVE DEMOCRAT RULE… 1860 T0 1930… WAS STAGGERING!!! IN 1929… WHICH WAS THE PEAK YEAR FOR ECONOMIC PROSPERITY IN AMERICA DURING THAT 70 YEARS OF ALMOST TOTAL CONSERVATIVE CONTROL OF AMERICA…. THE FEDERAL GOVERNMENT RAISED JUST OVER 1 BILLION DOLLARS FROM INDIVIDUAL INCOME TAXES… FROM 4 MILLION TAX FILERS… AND SINCE MOST RETURNS WITH INCOME OVER 1,000 DOLLARS WERE TAXABLE, THAT IMPLIES THAT ABOUT 90% OR MORE OF ALL HOUSEHOLDS DID NOT FILE ANY RETURN BECAUSE THEIR TOTAL INCOME WAS LESS THAN $ 1,000… FOR THE ENTIRE YEAR!!! LATER DATA SUGGESTS THAT EVEN INTO THE MID TO LATE 1930’S, A $ 500 A YEAR TOTAL HOUSEHOLD INCOME WOULD HAVE PUT YOU INTO THE TOP HALF OF ALL EARNERS… MEANING MOST WORKING PEOPLE EARNED LESS THAN 2 DOLLARS A DAY… CONSIDERABLY LESS THAN THAT IF YOU REALIZE MOST WORKING PEOPLE BACK THEN WORKED 6 DAYS A WEEK, AND VERY OFTEN 10 OR 12 HOURS A DAY!!! EVEN ADJUSTED FOR INFLATION, MOST AMERICANS WERE EARNING LESS THAN 2 OR 3 DOLLARS AN HOUR IN TODAYS DOLLARS!!! GEE… REPUBLICAN ECONOMIC POLICIES WERE REALLY GREAT.. WEREN’T THEY… NEVER MIND ALL THE BUSTS AND PANICS AND DEPRESSIONS THAT REPUBLICAN POLICIES CAUSED BACK THEN!!!

    THEN ALONG CAME THOSE DANG DEMOCRATS AND THE NEW DEAL, AND A FED THAT WAS AT LEAST FOR A FEW DECADES VERY FRIENDLY TO THE DEMOCRATS. WAGES BOOMED… AMERICA BOOMED… THE NUMBER OF PEOPLE WORKING BOOMED… AND INCOMES… AND GOVERNMENT TAX REVENUES SOARED…. AND THE UNITED STATES BECAME THE RICHEST AND MOST POWERFUL NATION ON EARTH… IN LESS THAN ONE SINGLE GENERATION!!!

  • berky

    So what kind of a tax system, if any, is your solution? and can you explain your position in less than 3 sentences?

  • JohnDille

    ANOTHER WAY FOR RICH REPUBLICANS TO DODGE TAXES… LIKE THEY REALLY NEED ANY MORE WAYS!!! THE TAX CODES ARE FULL OF THOUSANDS OF SUCH LOOPHOLES… AND IF YOU TAKE TIME TO READ SOME OF THOSE TAX CODES, YOU WILL REALIZE THAT MOST OF THOSE LOOPHOLES WERE WRITTEN FOR VERY SPECIFIC INDIVIDUALS OR SMALL GROUPS OF PEOPLE, OR FOR VERY SPECIFIC COMPANIES. VERY FEW AMERICANS REALIZE THAT LESS THAN HALF OF ALL THE INCOME EARNED IN ANY GIVEN YEAR IS EVER SUBJECT TO FEDERAL INCOME TAXES. SOME OF THOSE DEDUCTIONS APPLY TO ALMOST EVERYONE… THE STANDARD DEDUCTIONS AND PERSONAL EXEMPTIONS HAVE BEEN PART OF THE TAX CODE SINCE THE BEGINNING, THOUGH HOW THEY HAVE BEEN APPLIED CHANGED QUITE OFTEN… BUT HAVE BEEN MORE OR LESS SET IN STONE FOR ABOUT 60 YEARS OR SO. BUT MOST ALL OTHER DEDUCTIONS AND EXCLUSIONS AND CREDITS WERE CREATED BY THE RICH, FOR THE RICH… AND THEY COST THE FEDERAL GOVERNMENT ABOUT 300 TO 400 BILLION A YEAR IN LOST REVENUES, ON THE 1.3 TRILLION IN GROSS REVENUES THAT ARE UN TAXED BECAUSE OF ALL THOSE LOOPHOLES. THEY CALL THESE REVENUE LOSSES… TAX EXPENDITURES… AND EVEN THOSE HUGE LOOPHOLES ONLY COUNT THE REALLY BIG LOOPHOLES… OUT OF ALL THE LOOPHOLES THAT RICH FOLKS CAN TAKE ADVANTAGE OF! IF BRAIN DEAD RIGHT WINGERS REALLY UNDERSTOOD THAT VOTING FOR REPUBLICANS EFFECTIVELY IMPOSES A VERY LARGE TAX AND LOSS OF GOVERNMENT SERVICES BURDEN ON ORDINARY PEOPLE, MAYBE THEY WOULD NOT BE SO WILLING TO BE REPUBLICAN POLITICAL PROSTITUTES, LIKE THEY ARE NOW!!!