3 ‘Horrible’ Pieces of Tax Advice, According to The Money Guy Show
Written by
Catherine Collins
Edited by
Amber Barkley
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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.
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.
Lease a Range Rover and Write It Off
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.”
Make Your ‘Mastermind’ a Birthday Party
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.
Deduct Gambling Losses
Although The Money Guys shared several examples of bad money advice from TikTok, one of the strangest ones was the advice to ask friends and family for losing scratch off tickets to deduct gambling losses — or even pick them out of the trash. As The Money Guys pointed out, there are specific tax rules about gambling income and losses.
The biggest factor when deducting gambling losses, according to the IRS, is that you have to itemize your deductions on your taxes in order to qualify for this. The standard deduction — what you claim when you don’t itemize — is $14,600 for a single person in tax year 2024, or $29,200 for a married couple filing jointly. That’s a lot of $1 and $2 scratch-offs.
Plus, you can’t deduct more losses than you’ve won.
Final Thoughts
Ultimately, when you’re trying to save money on your taxes, don’t go to TikTok for advice. Speak to a qualified tax professional about deductions and how to make them properly before paying for goods or services.
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