How to Money Podcast Summary Episode: Trustworthy Tax Advice w/ Jasmine Dellucci #965
Release Date: April 2, 2025
Host/Author: iHeartPodcasts
Guest: Jasmine Dellucci, Tax Attorney, CPA, and Enrolled Agent

Introduction to Jasmine Dellucci

In episode #965 of How to Money, hosts Joel and Matt welcome Jasmine Dellucci, a seasoned tax attorney, CPA, and enrolled agent. Jasmine brings extensive expertise in the U.S. tax code and a passion for making tax law accessible and enjoyable. She actively shares her knowledge through online platforms, believing that "tax law should be available to everyone" (02:04).

Jasmine’s Journey into Tax Law

Jasmine shares her early interest in tax law, influenced by her parents who were both in the tax profession. Remarkably, she became an enrolled agent while still in high school, driven by her desire to pursue a career she was passionate about despite skepticism from her peers (05:30). This early start allowed her to deepen her expertise and establish herself as a credible voice in tax advice.

Navigating Social Media Tax Advice

A significant portion of the conversation delves into the landscape of tax advice on social media. Jasmine highlights the prevalence of inaccurate tax information online, attributing it to the allure of garnering clicks with misleading content. She observes, "there's a lot of bad tax advice... [people] are kind of posting things that they know... aren't really kosher but can get clicks" (07:15). Jasmine emphasizes the importance of providing accurate, reliable information and has built a following by correcting misinformation and presenting well-researched tax strategies.

Low-Hanging Tax Saving Opportunities

Jasmine discusses common tax-saving strategies that many individuals overlook. She points out that post the 2018 tax reforms, many employee-related deductions were eliminated, pushing taxpayers to explore other avenues like retirement accounts and short-term rental loopholes. She explains the short-term rental loophole, comparing it to platforms like Airbnb, which allow properties to be treated like regular businesses rather than passive income sources. This classification lowers the thresholds for active participation, making it easier for individuals to qualify for various tax benefits (10:41).

Retirement Accounts: Roth vs. Traditional

The hosts and Jasmine explore the differences between Roth and Traditional retirement accounts. Jasmine expresses a personal preference for Roth accounts, citing long-term benefits and assuming that taxes will rise in the future. She states, "my personal preference is always going to be Roth... I'm going to be making more over time" (23:56). Conversely, Traditional accounts might be more suitable for individuals who expect to be in a lower tax bracket during retirement.

IRS Transcripts and Tax Software

Jasmine introduces the concept of IRS transcripts, describing them as invaluable records that many overlook. She advocates for their use to ensure accuracy when filing taxes, noting that mismatches between returns and transcripts are a common source of IRS notices (14:36). When discussing tax software versus hiring professionals, Jasmine recommends using software for straightforward tax situations but advises consulting a tax professional as complexity increases.

Avoiding and Handling IRS Audits

The conversation addresses the fear of IRS audits and how to minimize the risk. Jasmine advises against claiming exaggerated deductions, such as significant losses on Schedule C without substantial business justification, which are common audit triggers. She explains that while audits themselves are unpredictable, maintaining accurate and honest tax filings greatly reduces the likelihood of being audited (31:56). In the event of an audit, Jasmine outlines the typically arduous and time-consuming process, stressing the importance of meticulous record-keeping and professional guidance.

Holistic Tax Planning and Long-Term Strategies

Jasmine advocates for a holistic approach to tax planning, focusing on both short-term savings and long-term financial health. She cautions against chasing immediate tax benefits without considering future implications, such as potential increased tax liabilities or IRS scrutiny. Jasmine advises evaluating the risks and benefits of each tax strategy, ensuring that decisions align with long-term financial goals (22:03).

Generational Wealth and Real Estate Investments

A key takeaway from the episode is Jasmine’s recommendation of real estate as a vehicle for generational wealth transfer. She highlights the favorable tax treatments associated with real estate, such as the step-up in basis that benefits inheritors. Jasmine explains, "real estate has such a strong lobby... the real estate lobby is just so strong they find a way to weasel into even things that weren't intended for them at all" (47:14). She underscores the advantages of holding real estate long-term to enable tax-efficient wealth transfer to the next generation.

Avoiding Tax Refund Pitfalls

Jasmine addresses the debate around tax refunds, describing them as "the steps that you choose to take today will help you to love what you do in the future" (15:34). She differentiates between clients who prefer minimal withholding to maximize their take-home pay and business owners who manage their tax payments proactively to avoid penalties. Jasmine advises clients to set up payment plans with the IRS when owed taxes exceed their immediate capacity to pay, thereby minimizing penalties and interest (29:58).

Combating Scam Tax Services

The hosts and Jasmine discuss the prevalence of scam tax services that promise to alleviate IRS burdens for a hefty fee. Jasmine warns listeners to be cautious of such services, emphasizing the importance of working with licensed professionals who genuinely care about their clients' financial well-being. She notes, "those companies, you know, they take all their money up front, so why would they still care... they're not typically malicious" (43:17).

Conclusion and Final Insights

As the episode wraps up, Joel and Matt reflect on the invaluable insights provided by Jasmine. They highlight her dedication, expertise, and genuine passion for tax law, underscoring the importance of informed and strategic tax planning. The conversation reaffirms that while tax law is complex and ever-evolving, accessible and accurate guidance can significantly enhance individuals' financial health and legacy planning.

Notable Quotes:

• Jasmine Dellucci (07:15): "There's a lot of bad tax advice... they're kind of posting things that they know... aren't really kosher but can get clicks."
• Jasmine Dellucci (23:56): "My personal preference is always going to be Roth... I'm going to be making more over time."
• Jasmine Dellucci (31:56): "The biggest audit trigger that I see all of the time is reporting a huge loss on a schedule C... ask for an audit if you want one."

Where to Find More Information: Listeners interested in learning more from Jasmine Dellucci can visit her YouTube channel Axleverage or join her free tax law community at actualtaxlaw.com. These platforms offer a wealth of resources, including monthly workshops and a supportive community for tax-related questions and discussions.

Note: This summary focuses exclusively on the content-rich sections of the podcast, omitting advertisements, intros, outros, and non-content segments to provide a comprehensive and engaging overview of the episode's key discussions and insights.