Professional guidance is essential when it comes to tax planning and financial management. Recently, financial advisors Brian Preston and Bo Hansen, the hosts of "The Money Guy Show," have scrutinized some popular yet misleading tax strategies shared on TikTok. These strategies, often presented as clever hacks, can lead individuals into risky territory, including potential fraud or non-compliance with IRS regulations.

Not all advice found online aligns with legal standards or professional recommendations. For instance, one viral TikTok suggested that users could fully deduct the cost of a luxury vehicle if used for business purposes. However, Preston and Hansen clarify that only the portion of mileage dedicated to business activities qualifies for deduction. Additionally, they emphasize the importance of meticulous record-keeping and warn against misconceptions such as equating deductible expenses with free benefits.

Another area of concern involves social events marketed as deductible business meetings. While genuine networking sessions may offer partial tax advantages, labeling private gatherings like birthday parties as "mastermind" sessions does not automatically qualify them for deductions. The IRS mandates clear business intent and adherence to specific rules regarding meal write-offs during legitimate business discussions. Furthermore, attempts to claim gambling losses through unconventional means, such as collecting discarded lottery tickets, are flagged as invalid by tax experts. Proper documentation and itemization are critical components of lawful tax practices.

Taxpayers seeking genuine savings should prioritize consulting certified professionals over relying on unverified tips from social platforms. By fostering awareness and promoting accurate information, individuals can make informed decisions that safeguard their finances while maintaining compliance with regulatory requirements. Embracing reliable resources ensures peace of mind and long-term financial stability.