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Tuesday, April 4, 2017

Tax Advice, from Life Explained.

We thought it might be a good time to cover some of the questions you might have about tax preparation, legal deductions, how to request an extension, and the best method of breaking out of a minimum security prison.  

The number one question we get here at the Life Explained tax preparation hotline is "can I deduct the cost of beer?"  Thirsty in Illinois.

Excellent question, Thirsty.  First, be warned, it is never a good idea to drink beer while preparing your taxes, or breakfast, but that never stopped us.  And, yes you can deduct the cost of beer from your taxes.  The best method is to get a doctor to write a prescription for "beer, a dietary supplement."  If your doctor is too lazy for that use the form 8283 from the IRS, and claim your beer expenses as donations to a tax exempt charity.  It might be a good idea to buy all of your beer from someplace like the Church Beer Works, or Beer Church, the receipts will flow a little more neatly that way.

Another hot topic on the hotline, "I work in an office with a very strict dress code, once a week we have 'grub day,' and are allowed to wear jeans and t-shirts, my question is can I deduct the cost of food if I eat it with my fingers standing over the sink?"  And Hungry Too, in Indiana,

Yes, Hungry Too, you can, up to 75%, it is part of the entertainment expense allowed in publication 463.  Of course you will need documentation proving that it was work related, and if you charge a fee to watch you will need to declare that as found income, taxable at 50%.

And the last question we will cover today. If my accountant is arrested, and facing vigorous prosecution how long should I wait before seeking immunity in a plea bargain deal? And A Little Nervous, in Iowa

Another excellent question, A Little Nervous.That depends on how comfortable you are living in a non extradition country. We recommend Bahrain. 

Here is our tip for the day. Don't forget to floss, but not while you are driving. Don't ask how we know.