TaxCoach Briefs:    June 19, 2008

Volume 3, Number 25

TaxCoach Briefs archives.

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SPOTLIGHT ON STRATEGY (EAL)
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DEDUCTIBLE SUMMER VACATION FUN

NOTE: We're keeping this week's Briefs brief so we can focus on this weekend's TaxCoach "Spring Training 2008."

Keith and I have been wearing white since Memorial Day, but summer doesn't "officially" start until this weekend. We're each planning to take our families on vacation, as you and your clients may be planning as well. But with summer here, I wanted to discuss some strategies for travel expenses -- and especially how to squeeze in some deductible summer vacation fun.

Travel costs are generally deductible for trips you take on behalf of your trade or business:

Transportation costs include planes, trains, and automobiles. The IRS prescribes specific formulas for calculating deductible business transportation expenses. These rules generally turn on how much of your time away from home you actually spend on business, and whether you travel outside the United States.

These rules generally limit your business deductions to bona fide business trips -- not vacations disguised as business trips. But you can still take generous business deductions for trips including some personal time. We recommend you keep a log or diary of your business time to you can substantiate whatever deduction you claim.

Want to write off weekends? You can treat them as business days if they fall between business appointments or if you stay over (before or after your business time) to qualify for airline "Saturday Stay" discounts. (Low airfares once meant the end of those Saturday requirements -- but $140/barrel oil, along with new fees for checked bags and peanuts, look likely to bring them back.)

Travel deductions aren't especially complicated -- but your clients will appreciate every bit of help you can give them with summer vacation costs. The more you help them save, the nicer your vacations will be.

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UPDATED CONTENT (EAL)
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CAMPAIGN 2008 TAX PROPOSALS

Last week, we introduced a customizeable "Campaign 2008 Tax Proposal" chart and Client Alert for you to help keep your clients informed about the McCain and Obama tax proposals. Specifically, we included Democrat Barack Obama's proposal to eliminate the $102,000 "wage base" on Social Security taxes.

Obama has since clarified that he would keep the "wage base" for most taxpayers, but reimpose the 6.2% Social Security tax (and 12.4% self-employment tax) on earned income exceeding $250,000. This proposal, Obama argues, will raise needed revenue yet avoid unduly penalizing middle-income earners.

This particular proposal has attracted much attention, and will likely be a key issue as the campaign moves forward. Therefore, we have updated the customizeable chart (available in the TaxCoach Playbook under "Sample Letters in Microsoft Word") as well as the Client Alert.

As always, whether or not your clients will be materially affected by these changes, hearing the news from you reinforces the value of your service and your relationship.

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MEMBERSHIP OPPORTUNITY (EAL)
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BEAT THE JULY 1 PRICE INCREASE

Since we launched TaxCoach, all the way back in May 2005, we've worked with hundreds of you across the country. We've added new modules, new tax tools, new marketing materials -- most recently, a mailed monthly newsletter, the TaxCoach Lineup. We've proven the concept of planning-based marketing. We've grown from the industry's only "plain-English tax-planning software" into a true business development system. And we've created a national community with our All-Stars Mastermind Group and upcoming "Spring Training 2008" Boot Camp.

Adding benefits necessarily involves adding costs, such as additional staff, equipment, and printing and postage costs. In order to continue the level of service that a comprehensive personal coaching, business development, and planning software system like TaxCoach deserves, our subscription rates will be going up marginally.

Several of our own marketing advisors have urged us to raise the rate all the way to $99/month. (In fact, a couple of them actually laughed at us when they learned how little we charge for everything included in your subscription.) We certainly think TaxCoach is worth it. But for now, we'd rather "build our base" and expose as many of you as we can to our proactive approach. So, effective July 1, 2008, the new rate will be $69 per month.

But you can still keep the current price -- and get nearly four months free -- by switching to annual "MVP" membership.

The annual rate is always a good deal, getting you 12 months for the price of 10. That's still true at the new rate of $690 which starts July 1. But, if you upgrade to "MVP" membership by June 30, you'll still get the current rate of $590 -- which means that right now, you'll get the next 12 months of TaxCoach for just a little over the price of 8. That's almost 30% off the monthly rate!

If you're already an annual subscriber, you'll get the discounted $590 rate automatically with your next renewal for the remainder of the year. "MVP" means we take care of our best subscribers!

Interested? Call us at 513-321-2820, or email support@taxcoachsoftware.com. We'll contact you to set up the details.

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SUBSCRIBER Q & A (KAV)
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Q: Does your software help people determine strategies before they embark on a business? By that I mean how to structure the new company. Or does it just take a person's current status and help minimize taxes accordingly?

A: Thanks for your interest. TaxCoach's "artificial intelligence" starts with a snapshot of a client's circumstances at the time you enter them into the system, then recommends strategies to consider to minimize their overall tax burden.

If your client is considering a major change, such as starting a business, we suggest you enter their information as circumstances will appear once the business is launched. Our recommended approach is to help clients make the right personal and financial choices first -- then find the most tax-efficient way to make them.

If the client is considering different entity structures, you'll find a summary grid in the Playbook to help compare/contrast options with regard to taxation, benefits, and liability, etc. (FYI, we have a similar tool for health cost strategies.)

Client circumstances can be complex, which is why the system doesn't -- and shouldn't -- make exact prescriptions. In those cases, TaxCoach serves as a tool to present choices to your client, then establish your value by helping them make those choices.

We're also available to consult with specific cases by phone or email. You may see some of these cases written up here in the Briefs from time to time.

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We're happy to answer your questions on TaxCoach content, features, marketing, or general taxation. While we give first priority to our TaxCoach All-Stars, we work to answer all questions. For best response, email support@taxcoachsoftware.com. If we can't answer immediately, or we think the answer will be useful to all of our subscribers, we'll publish it (anonymously) here in the 'Subscriber Q & A' section of TaxCoach Briefs.

Regards,

Ed Lyon
Keith VandeStadt

www.taxcoachsoftware.com
(513) 321-2820

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