Longest "Confirmed" in Iraq

[fabsroman]

The reason I love this site is because it is usually good for a laugh or two a day. Today was a tough day at work. I was working with a man that understands nothing about the tax code (i.e., he is in the granite counter top fabrication and installation business). He wanted to know if he could deduct the $12,000 in plastic surgery that he was paying for his girlfriend. I asked if she was a professional prostitute in Nevada or a stripper, and the answer was no so the deductibility answer was no. Even if she were a prostitute or stripper, he still wouldn't have been able to deduct the expense on his tax return because it would have been her expense. After trying to explain that to him, I told him that by taking $12,000 out of the company to pay for the surgery, he would have to pay about $3,000 in taxes next year. He couldn't understand that either. What really got him out of his chair was when I told him that his tax liability for 2004 would probably be around $30,000 or more. He has been in business for almost a year now and he is making money hand over fist. Problem is that he is a good granite guy, not a good business man, and he spends the money left and right, doesn't keep receipts for all of his "cash" business expenses, doesn't understand why he has to pay taxes on money he withdraws out of his business bank account with his ATM card, and he doesn't understand that he has to pay taxes as a small business owner (i.e., his clients do not withhold taxes like his previous employers did). What a nightmare, but this post and the rabbit post in hunting tales were good enough to get rid of some of the headache.