TaxCoach Briefs:    March 18, 2010

Volume 5, Number 11

  • Marketing Minute: Good Dates, Bad Dates
  • New Feature: Finally Firefox!
  • Member Success Story: "Elite Proactive" Tax Advisors
  • Member Call-In: Real Estate in Retirement Accounts

Are you showing clients how to use a Section 105 Medical Expense Reimbursement Plan to deduct family medical costs as business expenses? If not, they may be losing thousands in tax savings and client referrals! Your TaxCoach membership includes everything you need to establish plans for clients. If you're not already a member, click here for your 30-day no-risk trial.

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MARKETING MINUTE (EAL)
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GOOD DATES, BAD DATES

Am I missing something, or is there an election going on?

I ask because I've just noticed a new commercial for Chemistry.com, the online dating service. Here's the script:

Why is Chemistry.com's "Romance for America" plan enjoying unprecedented bipartisan support?

Who would oppose making good first dates great, and skipping bad first dates altogether. All without raising taxes - ever!

Get plan details at Chemistry.com today! We're Chemistry.com and we approve of this message."

(I know - you were wondering what a dating site had to do with taxes!)

I would expect to see something like this in the fall, before the real elections. But maybe I'm just missing something. (I understand Congress is debating something to do with healthcare right now - but who has time to pay attention?)

But here's the point - and I'll keep it short because I know you're busy.

People hate paying taxes.

A couple of weeks ago, I outlined five steps to building your dream practice. Step Three was to craft a message to attract your target market. Specifically, I said to appeal to your market's particular hatred of paying taxes. I said it doesn't matter if you're targeting business owners, professionals, retirees, or even kids with their first hangover. They all hate paying taxes.

You're in the business of solving a problem your clients hate enough that advertisers who have nothing to do with taxes will use the fact that people hate paying taxes in their non-tax marketing! Shouldn't you take every advantage of that same opportunity to market services that actually are related to tax?

Right now, you're neck deep in tax returns. And nobody really likes filing taxes. But do clients really hate filing their taxes? Or do they hate paying them?

Some clients even like tax time. Why? Because it means a refund!

This time of year, it's easy to get caught up in the taxes we file for our clients. And superficially, sure, that's what we're doing for them. But we really should focus on the taxes we save them.

Where can you identify specific savings you create for your clients? How can you tell them how much you save them? Consider showing them by preparing a mock return showing what they would pay without your strategies. Then do it!

That's how we get the big bucks. That's how we get the premium fees and make them stick!

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NEW FEATURE (KAV)
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FINALLY FIREFOX!

For those of you who care about these things, TaxCoach was developed using Microsoft's "Visual Studio" running a SSQL database. Ed says he has no idea what that means and he's just glad he's got me to do the heavy lifting.

We chose Visual Studio because Microsoft rules the world. However, the original version we used made it difficult for TaxCoach to display in browsers other than Internet Explorer. Because guess who owns IE . . . Microsoft!

Last Wednesday I was at the office into the dark hours again, for the umpteenth time, working with my tech guru Darren on a major upgrade to TaxCoach - specifically, upgrading Visual Studio to a more recent release. And that, in turn, means . . . . (drumroll) . . . TaxCoach will now run with, among others, Mozilla's FireFox browser, and even Safari on the Mac. Mon Dieu!

While most of us do stick with Internet Explorer, there are a growing number of renegades among us who prefer an alternate browser. And given they've become increasingly vocal about it, we needed to address it!

Now — I know it's 2010. I know TaxCoach is in its sixth year. You are asking yourself, or me, what could possibly have taken so long?!

Weeelll — it should come as no surprise that a Microsoft development tool would want to create things that only run in a Microsoft environment. That's called "advancing a proprietary standard," you see — or more to the point, monopolizing — and it's a grand tradition in American business. There was even this one great example of a company that developed a computer operating system and then gave it away — just so it would end up getting a huge installed base and becoming the de facto industry standard, which then set the company up as the undisputed king of the market. Oh wait, that was Microsoft, too!

Yeah. So, the hue and cry eventually grew loud enough that even "Mr. Softie" had to relent, and re-engineer his equally universal product, Visual Studio, to support browsers other than his own. But — the change is a lot like adding a basement to a house. And I don't mean just digging out the crawl space. It has taken a lot of work, and there are a number of minor tweaks to iron out. But these are primarily nuisances, like font sizes.

We'll keep pounding on it, but the main thing is that the graphics now display properly - and as always, the report generators function properly - under FireFox and other browsers.

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MEMBER SUCCESS STORY OF THE WEEK (KAV)
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Manhattan TaxCoach veteran Brian Goldglanz wrote us with this to say about the Certified Tax Coach™ program:

"Thank you — it's a wonderful feeling being part of this group of elite proactive tax advisors.

And thanks for opening my eyes to your methodology of income shifting. I was aware of Tax Planning but not to such an extent. I am glad that I joined!

All the best."

Brian Goldglanz, EA, CTC™
New York, NY

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MEMBER RESOURCE (KAV)
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MEMBER CALL-IN WITH ED AND KEITH

This week: "The Goodness" again, as usual. Another good mid-tax-season turnout, as before, with more excellent question threads.

Here's an excerpt of questions and comments raised by callers this week, straight from the call log.

  • A prospect called me to inquire about bookkeeping services. He wants someone to pay his bills each month and post the bills into QuickBooks. Normally I wouldn't give this a second look, however the prospect is an orthodontist who owns five different practices. He also owns two apartment buildings. He has an existing tax accountant who has been with him for many years. I'm thinking he might be a good candidate for tax planning so I agreed to meet with him. If I take on his bookkeeping work I might be able to use the opportunity to develop a relationship with him and turn the conversation to tax planning in the future. Any ideas on questions to ask and whether this might be a good investment? Dentists are a hard market to crack and you don't get them calling you every day!
    • The dentist is currently paying all his bills himself!
  • IS THERE A HOTEL RESERVED FOR THE SUPER TABLE CONFERENCE
    [A: Yes, we have a block reserved under "TaxCoach Software Group" at Le Richelieu in the French Quarter, 504-529-2492. Get the discounted rooms while they last! ]
    • Are spouses welcomed to come & observe the meetings? Will they have to pay?
      [A: Spouses and associates are certainly welcome as long as there are seats available. However, there is no discount on the registration fee. The event has a limited number of seats, and so guests must register as would regular members. ]
  • Client has approached us to put a bookkeeper on site to pay his bills and run his payroll are there any resources that would help us on an hourly rate, client will soon be a tax coach client as he has a keen interest in an entity change to save tax dollars?
    [A: Best approach would be to set up all services as part of a package with a monthly retainer, avoiding the hourly billing. ]
    • Follow up we anticipate 20 hours a week.
    • Thank you for that insight it makes sense to wrap things into a package coupled with the tax coach savings .
  • I have a client that wants to purchase a rental house and want's to take a withdrawl from his IRA to pay for it (over 59-1/2). I want to suggest a self-directed IRA to prevent a taxable distribution, is there a module in Tax Coach that covers that?
    [A: Yes, it's entitled "Real Estate in Retirement Accounts." It's the third-to-last module in the Your Investments section, on the Reports screen. ]
    • Are self-directed IRA's allowed to be used to purchase rental property?
    • The distribution from the IRA would be taxed (with the exception of the principal) is that correct?
    • Is there a way to set up your real estate in your retirement plan like the old A/B partnerships? Setting up a separate enity that the IRA invests in as the A or income side and you are the B or growth and tax benefits investor.
    • I have a client whose income is over $150,000 and cannot write off her real estate losses but will be taxed if she has real estate profits. Can she sell her properties to her IRA?
    • With regard to real estate in an IRA you need to look at the ultimate goal. If you expect to realize appreciation from the investment, having it in a retirement plan would convert capital gain to ordinary income.
    • are there two or three facilitators that you recommend for self-directed IRAs
  • Have a client H/W who are both W2 wage earners H=$135k/year; W=80K/year. Have maxed out 401(k) contributions. Besides Mortgage Interest and standard Schedule A items have no other investments/deductions that provide cover. Any ideas on what I could do with Tax Coach for someone like this???
    [A: Not much. The sweet spots for tax planning really are business owners, portfolio holders, and real estate investors. No matter how affluent, wage-earners just don't have the complexity for the effective income and expense shifting that is the core of true tax planning. ]
    • Thanks! I agree wanted to validate that I wasn't missing anything and that gets it.
  • Is there a CTC academy registration form. I have passed the online course and want to go in April.
    [A: Please contact Dominique Molina at the AICTC, 1-877-MyAICTC, or admin@certifiedtaxcoach.com. ]
    • What is CTC? cost for program?
      [A: CTC is the unique designation offered via the Certified Tax Coach™ program of the AICTC. In addition to the designation that announces to clients and prospects that you are a uniquely proactive tax planner, the program features intensive training in advanced tax strategies, a national searchable database of coaches to attracts prospects, marketing and business tools, a national online forum of peers, continuing education, and much more. You can find more information at www.CertifiedTaxCoach.org. ]
    • could we have hotel info about the ctc academy?
      [A: We've reserved a block of rooms at the Doubletree in Del Mar. Call 858-481-5900.]
    • COULD YOU PLEASR REPEAT THE DATE AND LOCATIONS OF NEXT 2 TO 3 CTC ACADEMY
      [A: The next Academy dates for San Diego are April 21-23, and June 11-13, with at least two more 2010 dates tentative. You can always find the latest schedule for upcoming Academies, as well as CTC monthly CE courses, in the CTC Toolbox, under the heading "Continuing Your CTC™ Education (CYCE)." ]
    • Graduated CTC about a month ago, how do I get on the site for listing of coaches
  • Thank you for an insightful session.

If you're looking for clarification on TaxCoach strategies or additional ways to profit from TaxCoach too, join us for the next call, on Wednesday March 24, at 1pm Eastern. Enter a question or just listen in on the repartee. Check the "Contact Us" button within TaxCoach for registration instructions.

While our elite members (All-Stars, Press Club, and Hall of Fame) can still schedule time directly with Ed as part of their coaching programs, we simply cannot answer marketing and tax-strategy questions via email or unscheduled calls.

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We can answer questions on using TaxCoach system features anytime. (Save marketing and tax strategy questions for Member Call-Ins.) For best response, email support@taxcoachsoftware.com.

Regards,

Ed Lyon
Keith VandeStadt
http://www.taxcoachsoftware.com/
(513) 321-2820

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