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This Tax Advice Could Land You In Jail ft. Jasmine DiLucci

Money Guy Show

Hosted by Brian Preston

1h 3m
Transcript

Original podcast

Summary

Written by a model from the transcript; not yet reviewed.

In this episode of the Money Guy Show, hosts Bo Hanson and Brian Preston are joined by practicing tax attorney, CPA, and enrolled agent Jasmine DiLucci to separate legitimate tax planning from illegal tax evasion. The discussion covers common internet tax hacks, including writing off vehicles, home office deductions, hiring children, moving to Puerto Rico, and combining business travel with vacations. The conversation highlights the strict legal hurdles and documentation required by the IRS for these strategies, warning viewers against social media advice that promotes aggressive tax loopholes without proper legal standing. The episode also features a live Q and A session answering audience questions on topics such as remote work state residency, ABLE accounts, Roth IRA eligibility for teens, and finding a qualified tax professional.

  • Establish a legal home office to convert secondary work commutes from non-deductible personal mileage into deductible business mileage. 6:15
  • Ensure a genuine business need and proper records when hiring children to avoid high IRS scrutiny on related party transactions. 13:43
  • Verify state residency rules and maintain complete documentation when moving states for tax reduction, as states closely examine actual intent and domicile. 17:39
  • Compare your actual prior year total tax to current withholdings to determine safe harbor compliance and avoid unexpected penalties. 41:39

Chapters

  1. 0:01
    Episode Intro and Sponsor Ad

    Hosts introduce the show and the Google Chrome sponsorship ad.

  2. 0:51
    Guest Introduction: Jasmine DiLucci

    Brian and Bo welcome tax expert Jasmine DiLucci and discuss her background.

  3. 5:11
    Tax Avoidance vs. Tax Evasion Explained

    Hosts and Jasmine differentiate between legal tax avoidance and illegal tax evasion, setting the stage for the hacks discussion.

  4. 5:51
    Hack #1: Vehicle Mileage Deduction Rules

    Jasmine explains how to properly deduct vehicle mileage, including home office requirements and record keeping.

  5. 9:38
    Hack #2: Home Office Deduction Criteria

    Discussion of the legal requirements for a home office deduction and common pitfalls.

  6. 12:35
    Hack #3: Hiring Children and Payroll Tax Issues

    Exploration of the complexities and risks of paying children as employees for tax deduction purposes.

  7. 16:02
    Hack #4: Puerto Rico Tax Incentives and Residency Rules

    Jasmine and hosts discuss the legitimacy and challenges of moving to Puerto Rico for tax benefits.

  8. 28:01
    Live Q&A Session Highlights

    Hosts answer audience questions about child babysitting income, ABLE accounts, and other tax scenarios.

  9. 41:00
    Tax Withholding and Estimated Payments

    Hosts explain how to estimate tax liability and manage withholding to avoid penalties.

  10. 42:18
    AI Uncertainty and Career Planning

    Panel discusses how AI impacts job security and advises on skill development and savings.

  11. 46:25
    Finding a Qualified Tax Professional

    Listeners learn how to evaluate and select a competent tax preparer or CPA.

  12. 54:41
    UTMA Account Tax Strategy

    The team explores whether selling holdings in a UTMA account can exploit the child tax bracket.

Highlights

  • 3:54

    Common Sense Versus Tax Rulesinsight

    The guest explains that people often rely on common sense for taxes, but tax rules do not always align with common sense, leading to confusion between tax avoidance and illegal tax evasion.

  • 6:09

    Home Office Vehicle Deduction Rulesstrategy

    Driving to a primary workplace is personal commuting, but establishing a legal home office turns trips to client locations into deductible business mileage.

  • 13:28

    High Scrutiny on Hiring Kidsinsight

    Hiring newborns or toddlers as business models lacks ordinary and necessary business use, triggering high IRS scrutiny on related party transactions.

  • 18:19

    Travel Expense Hurdles and Code Sectionsstrategy

    Under IRC Section 274D and international travel rules in Section 274H, combining a vacation with minor work calls does not make the trip a deductible business expense.

  • 22:05

    Limits of Relying on Advisorsinsight

    The guest warns that claiming you relied on an advisor fails as a defense if the advisor is unqualified or if you fail to exercise basic due diligence.

  • 28:43

    State Residency and Dual Taxationinsight

    Moving to a zero-income-tax state like Florida requires more than just spending six months there; former states can still claim residency based on intent and domicile.

  • 40:33

    Safe Harbor Tax Payment Rulesdata

    To avoid underpayment penalties, taxpayers can rely on safe harbor rules by paying 100 or 110 percent of their prior year tax liability.

Quotes

  • “If you understand how it works and the unique intricacies, you can avoid taxes.”
    Unnamed speaker · 3:34
  • “They added it because of you.”
    Brian Preston · 2:31
  • “The 280 F auto luxury limitation.”
    Unnamed speaker · 8:04
  • “The IRS can and does just like collapse those things.”
    Unnamed speaker · 14:47
  • “This can land you in jail.”
    Unnamed speaker · 20:49
  • “I love that a good person with AI is likely going to be better than AI on its own. So if you are concerned about your specific vocation or role, how am I adopting my skill set?”
    Unnamed speaker · 45:25
  • “I think the most dangerous place that people put themselves in is they hire someone that says lots of fancy words, and if anything, makes it sound more complicated and confusing. So then they think that person knows when really the best people are able to simplify it and make it understandable.”
    Unnamed speaker · 48:46
  • “If you are over that sum, just make sure, exactly what Jasmine said, you have the money to pay in the remainder in April 15th.”
    Brian Preston · 41:32
  • Google Chrome 0:01–0:22
  • Nordstrom Rack 0:29–0:42
  • Google Chrome 31:58–32:21
  • Nordstrom Rack 32:25–32:50
  • Money Guy 49:01–49:17
  • Jasmine DiLucci 59:54–1:00:00
  • Money Guy 1:01:08–1:01:59
  • Stonefire 1:02:12–1:03:10

About this episode

You can check out Jasmine’s content here: https://www.youtube.com/@taxleverage Can viral tax hacks actually land you in prison? Tax attorney, CPA, and Enrolled Agent Jasmine DiLucci joins Brian and Bo to separate legal tax avoidance from illegal tax evasion. From writing off your car and home office to hiring your kids, deducting vacations, and moving to Puerto Rico, we're examining popular tax advice to find out what actually works—and what could create serious IRS problems. Plus, discover legitimate tax planning strategies involving 401(k)s, Roth accounts, real estate, business deductions, and the three tax buckets that can help you build a more tax-efficient financial future. ⁠⁠⁠⁠Jump start your journey with our FREE financial resources⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠Reach your goals faster with our products⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠Take the relationship to the next level: become a client⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠Subscribe on YouTube for early access and go beyond the podcast⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠Connect with us on social media for more content⁠⁠⁠⁠⁠⁠⁠ Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

0:00
1:03:02

13,838 words · 8 speakers

Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.

Topics

  • ABLE
  • Florida
  • IRS
  • Michigan
  • AI
  • Puerto Rico
  • California
  • Tax Leverage
  • 274D
  • Mile IQ

Page updated · transcript and summary are machine-generated