Evan Hall

How to verify if the “tax loopholes” influencers promote are legit, In <5 minutes. (With a simple Google search framework) Influencers love to promote the benefits of various tax loopholes to drive engagement and go viral. People hate paying taxes. Influencers sell them the dream of stiffing the IRS. Doesn’t matter if their information is bad or straight up fraudulent. It’s a simple formula that has worked for decades. So how do you determine fact from fiction? Here’s my simple google search framework to get to the truth: [tax loophole] [keyword] [problem/trap/scam] For example, Let’s say I wanted to fact check the below video. I’d type into google: Irrevocable trust [tax loophole] Step up basis [keyword] Problem [problem/trap/scam] “Irrevocable trust step up basis problem” And instantly you’d find multiple articles and videos referencing Rev. Rul. 2023-2 which clearly states the proposed strategy in this video doesn’t work. Once asset are in an irrevocable trust there is no step up in basis on death. How many people watched this video and thought it was brilliant? I’m sure some went to their advisors and were set on the right path. But as more DIY solutions pop up, I fear many people will make catastrophic financial decisions based on what they see on social media. And when the bill comes due, there will be no recourse. Time will tell.