Twitch Streamer Amouranth Bought A Petrol Station For -$110,000 Using Rich-Person Maths

Twitch Streamer Amouranth Bought A Petrol Station For -$110,000 Using Rich-Person Maths
Simulated image of cars waiting in line for over two hours because Amouranth subbed for one of the attendants on their sick day. (Photo: Darren McCollester, Getty Images)

Yes, the headline is correct. The popular Twitch streamer Amouranth did in fact purchase a petrol station. Not only did she purchase a petrol station, she claims to have done so while turning a profit through tax deductions. To prove this, she tweeted out a bunch of rich-person maths — which makes my brain hurt.

Amouranth is one of the biggest, and seemingly most frequently banned, streamers on Twitch, so seeing her invest in other enterprises isn’t a huge surprise. Plenty of streamers invest in businesses. Pokimane is a partial owner of the EVO fighting game tournament, tons of streamers have started their own merchandising companies, and Ninja does…whatever Ninja does (no one’s quite sure). Usually though, their secondary gig is related to their streaming or gaming habits. Amouranth, however, has taken the path less travelled — and it has made a “marginal” difference.

Amouranth chose to purchase a petrol station for about $US4,000,000 (A$5,455,140) dollars, only $US1,000,000 (A$1,363,785) of which she had to pay upfront. In a series of tweets rife with speculative rich-person maths, the streamer explains how she actually made money off of this gargantuan purchase through the wacky details of U.S. tax law. The basic version is, by taking out this massive loan and depreciating the speculative value of the property, she has received a $US1,110,000 ($1,508,379) tax deduction. This extra $US110,000 (A$150,016) becomes “profit” because it’s money she doesn’t have to spend on taxes.

In her thread she claims, rather cavalierly, that this isn’t some loophole or special deal, but is a thing that “everyone” can do. Which is…kind of true? These rules do exist for everyone, but the amount of money (and credit) required to bankroll something like this is anything but accessible. All things considered, she gives a pretty solid explanation of how rich-person maths works. If you have enough money and credit, you can generate profit with really limited risk.

She currently plans to lease the petrol station to Circle K, so don’t expect to walk into a random petrol station in an unnamed major metropolitan area to see Amouranth working behind the counter.

Comments

    • You’re new around here, aren’t you? There wouldn’t be many months this year where she hasn’t featured in at least one article on Kotaku.

  • “…a bunch of rich-person maths — which makes my brain hurt.”

    If multiplication and subtraction make your ‘brain hurt’, it’s not ‘rich-person maths’ you should be concerned about…

    Disappointing that nobody’s pointing out the fact she’s actively contributing to the ongoing climate emergency, now, by being complicit in and supporting the consumption of fossil fuels. Should’ve chosen a much more morally sound business.

  • She didn’t make money. She’s bought an asset that has a huge number of outgoings and liabilities, including repairs, insurance, depreciation, loan repayments, and local state and federal taxes.

    Sure, she may have transferred some of her costs from her streaming income to her property investments in the first year but… so what? The game is how much cash you have when you retire, not any short term sugar hits you get along the way.

    Consider also the fact that she’s just spent $4m on an asset that nobody else has been willing to pay $4m for otherwise it would already have been sold. So, if she does need to offload it this time next year there’s at least a chance that she’s going to have to wear a loss; maybe she’ll only be able to get $3.8m instead of $4m – there’s her easy $110,000 gone right there.

    And bear in mind that she’s buying into a dying asset class. Every year there are going to be a smaller percentage of petrol powered vehicles on the road, more fuel efficient vehicles, and an eroding customer base.

    What is actually rich people maths here is that she’s tossed a crapton of money at an asset in an industry that she apparently has no background in on the basis that she can afford to take a financial hit if the whole thing goes tits up.

    Let’s be clear here, somewhere in the world there’s a former petrol station owner smugly contemplating the easy $4m that they just made by cashing out their investment in a petrol station.

    • ^this tbh

      I think she is smart for wanting to invest her money rather than leaving it in a bank, however she is stupid for buying this.

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