The financial advisors behind the podcast ‘The Money Guy Show‘ recently reviewed popular TikTok tax hacks that are actually terrible money advice. In addition to being financial advisors, hosts Brian Preston and Bo Hansen are also accountants, so listeners can benefit from hearing their advice about what is and isn’t allowed when you file your taxes.
For You: The Best Tax Deductions and Tax Breaks for 2024-2025
Check Out: 6 Hybrid Vehicles To Stay Away From in Retirement
While the hosts aren’t against tax planning, many of the TikTok tax strategies they reviewed are less about planning and more about being misleading or even committing fraud. Many people turn to ‘The Money Guy Show’ for financial lessons that aren’t boring. So, if someone is interested in lowering their tax bill, this is a show to follow.
What’s important to remember is that if people need to get tax advice, they should follow the advice of an accountant. Not everything you see on TikTok is true, but sometimes people get excited about ways they can save money. Unfortunately, not all ways are valid.
Here are a few examples of bad Tik Tok tax advice, according to the pros at ‘The Money Guy Show.’ Also, learn how to avoid bad financial advice on social media.
The Money Guys reviewed a video where Grant Cardone told viewers they could write off a $150,000 Range Rover “100%” so long as they use it for business.
The IRS does have rules about using a car for business purposes, but how you can only deduct the business portion of how you use it.
The Money Guys explained you have to carefully track your mileage to write off a car as a business expense — you can’t write off any driving for personal use. Preston also pointed out, “‘Deductible’ is not ‘free.’ … You’re still paying 60 cents on the dollar.”
Find Out: 6 Reasons Your Tax Refund Will Be Higher in 2025
Many people in business have “mastermind” groups, where they gather with other entrepreneurs and business owners to network and learn. However, one TikTok account encouraged people to throw birthday parties but call them masterminds as a way to write off the event.
The Money Guys explained that there are specific rules about what you should discuss if you want to write off an event. The IRS allows a 50% meal write off if you’re truly at a business related meeting — and it must be “truly for business,” Preston said.
Hansen added, “If it happens to be inside of a business setting, then yes, it’s probably deductible,” but you can’t write off any party by calling it a mastermind.
