TikTok: Risky Tax Advice and Supersize Valuations

The IRS debunks some TikTok influencers’ tips to avoid paying taxes on trust income. Meanwhile, why a TikTok IPO could be a “unicorn of all unicorns.”

Tax expert Ed Slott explains why following some tax advice on TikTok could lead to an IRS audit. Jack Shannon, Morningstar Research Services’ senior manager research analyst, pits the valuation of privately held ByteDance against publicly traded rivals Meta and Snap.

00:54 How are Companies like ByteDance Valued?

03:08 Why Valuations Matter

05:10 ByteDance and Tech’s 2023 Rally

07:55 TikTok, Meta, and Snap

10:03 TikTok’s Business Risks

11:27 The “Unicorn of all Unicorns”

13:11 IRS Releases Memo About TikTok Trend

14:09 Audit Warning

17:37 What the TikTok Trust Promoters Are Getting Wrong

19:13 How to Protect Yourself



Read about topics from this episode.

How Mutual Funds Are Valuing TikTok, Twitter, and Other Private Companies https://www.morningstar.com/funds/how...

The Best and Worst Mutual Fund Bets of the Past 25 Years https://www.morningstar.com/funds/bes...

IRS Chief Council Memo https://www.irs.gov/pub/lanoa/am-2023...





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Ivanna Hampton https://www.morningstar.com/authors/2...

Jack Shannon https://www.morningstar.com/authors/2...



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