The streamer recently confirmed this rather strange business venture on Twitter, and while many have found reason to praise the streamer for her business savvy, equally there are those that have seen the way she has talked about the purchase as coming from someone clearly far removed for her audience.
Amouranth owns a gas station owner
Amouranth went into detail in a series of tweets of how she made the purchase as well as plans for how she’ll be managing it. Fans won’t be seeing the streamer at the gas station as she intends on leasing the purchase to an operator to manage the business.
According to the streamer, the purchase of the gas station saw her invest around $4,000,000 for which she paid $1,000,000 upfront. She also revealed that an interesting situation arose where she got the gas station for “free” after she used the U.S tax code to her advantage and effectively earned back the initial investment by getting a very generous tax break.
Now since we bought this gas station & in accordance with applicable laws (&/once structured correctly) I will take an accelerated depreciation charge of approximately $3m— Kaitlyn (@wildkait) November 9, 2021
$3,000,000 * .37 (my marginal tax rate) = $1,110,000
So for 2021 I will owe $1,110,000 LESS in income tax
She explained that according to U.S. tax federal laws, she will be taking an “accelerated depreciation charge” of around $3,000,000 after purchase. This charge is applied to new business assets as a means for investors to reduce the taxes they would otherwise pay on their income.
Together with her depreciation charge and her marginal tax rate of 0.37%, she will be paying $1,110,000 less in U.S. federal income tax for this year alone. As a result, the streamer gains $110,000 through the investment into the gas station.
The streamer will also be making an income of about $85,000 annually on the business' rental fees. Amouranth further explains that in a few years time, she does intend on selling the gas station at a higher market value for which she will be reinvesting the money into her next business venture.
While her money moves are commendable, many have criticised the streamer on her business investment. She has since clarified that she’ll be spending over $6,000,000 in federal income tax this year alone. The investment in the gas station is one of a few ways to decrease the amount she owes in taxes.
It is disgusting how you rich people can do all this and if we try to do any of this we can't the system is made for the rich to do this it's unfair and not right.— Suntop Kinseeker (@SunstreamK) November 10, 2021
While her hot tub streams continue to generate thousands of views on Twitch, Amouranth is making quite the impression with her savvy business mindset. As to what her next business move would be, the streamer will indeed be letting everyone know.
- Read more: Amouranth slams haters with one simple truth
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Featured image courtesy of Twitch / Amouranth.