TaxCoach Briefs:    July 15, 2010

Volume 5, Number 27

  • Marketing Minute: News You Can Use
  • Member Event: Member Appreciation Update
  • CTC Member Event: Recruiting, Managing, and Retaining Talent
  • Member Success Story: Sold First Tax Plan
  • Member Resource: Member Call-In

****Attention All-Stars and Press Club members ****: The new self-scheduling software has finally debuted! Before we roll "GotOfficeHours?" out to the elite members and then to the public, we've set up the All-Stars coaching calendar as the first production instance. Next time you schedule calls with Ed, you'll be seeing the "new world order." Let us know what you think!

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MARKETING MINUTE (EAL)
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NEWS YOU CAN USE

Keith and I are big fans of the news program Morning Joe on MSNBC. Joe Scarborough is a former Congressman from Pensacola, FL, and co-host Mika Brzezinski is daughter of former National Security Advicor Zbig Brzezinski. (Could somebody buy a vowel, please?) Scarborough and Brzezinski host a rotating crew of journalists, politicians, and even Hollywood entertainer. But my favorite part of the show is co-host Willie Geist's "News You Can't Use" segment featuring oddball stories like the Indonesian two-year-old who fires up two packs of smokes per day. (Since that segment aired, the toddler's parents have apparently been shamed into cutting him back to just 15 cigarettes.)

The news is full of fun and unusual stories that you might not think could help you market tax planning. But we all know that taxes affect nearly every financial choice your clients make — so it shouldn't surprise you that most news stories have at least some tax angle. We've said consistently over the years, when you can tie your own marketing into the day's news, you join the conversations your prospects are already having, rather than having to start your own conversation. And this week's news brings two such stories.

The first story involves actreess Lindsay Lohan, who made her silver screen debut at age 12, playing adorably cute identical twins in Disney's The Parent Trap. But she grew up fast — probably too fast — and has since established a reputation as one of Hollywood's hardest-partying young stars. Now she sells magazines with headlines out of the police blotter, not movie reviews. Her life has become the sort of tabloid trainwreck that lets the rest of us feel smugly superior.

Back in 2007, Lohan spent a grueling 84 minutes in jail after pleading guilty to various drug and alcohol charges. Last week, she made headlines again after Superior Court Judge Marsha Revel sentenced her to 90 days in jail for missing the court-ordered alcohol treatments mandated as part of her last sentencing.

Hollywood celebrities have always spent small fortunes on professional advisors - agents, accountants, attorneys, and business and investment managers among them. But criminal lawyers are increasingly joining those ranks. While nobody wants to pay a criminal attorney, are there at least any tax advantages to ease the sting of the bill? More important, is there a "hook" that you can use to link her story to your service?

The Supreme Court says legal fees may be a deductible business expense if the unlucky defendant paying those fees can show a sufficient link between their trade or business and their (alleged) crime. In Lohan's case, though, there's really no connection between missing rehab and promoting movies. You might think it would be enough for her to simply say "I should get the deduction because if I'm in jail, I can't earn taxable income." But the Tax Court has consistently shot down that argument. (And don't forget the 11 cents/hour she can earn stamping license plates!)

Judge Revel also sentenced Lohan to another 90 days of inpatient rehab. Fortunately, drug and alcohol rehab costs are a deductible medical expense - to the extent total medical costs exceed 7.5% of "adjusted gross income." Most stars with Lohan's "A-List" name recognition earn far too much to take advantage of that deduction. In her case, however, her post-rehab income may be just low enough that she can use the help!

The second story involves New York Yankees owner George Steinbrenner, who died Monday at age 80. I realize it's hard to see the bright side in dying — but his heirs should be glad his heart picked 2010 to finally give out.

As we all know, the estate tax itself "expired" this year. Under current law, it roars back on January 2011 with a $1 million tax-free "unified credit" and 55% top rate. Steinbrenner is estimated to have been worth $1.1 billion, which suggests that his estate will avoid $600 million in tax.

Some sort of estate tax break is likely this year. House Democrats have passed legislation reimposing the tax at 2009 levels and making it retroactive to January 1st of this year. In the Senate, Jon Kyl (R-AZ) and Blanche Lincoln (D-AR) have introduced legislation setting the exemption at $5 million and the rate at 35%. that legislation would also let estates of decedents dying in 2010 to pay tax at this year's 0% rate and giving up the traditional stepped-up basis, or keep that stepped up basis and pay tax under the new regime.

The lesson here is simple. The news is full of stories that have your prospects and clients talking. Those stories, in turn, let you add a "tax spin" to subtly emphasize your expertise, your experience, and your value. Don't be a bore about it — but don't miss the chance to use the news to blow your own horn too.

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MEMBER EVENT (EAL)
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MEMBER APPRECIATION UPDATE

We've got over 50 of you registered for the member Appreciation Event here in Cincinnati pn September 30 and October 1. Not bad, considering the only promotion we've done has been four short blurbs here in the Briefs. I'm getting less and less jazzed about writing the usual long sales letter. We may not even need a postcard to fill this party!

Two full days masterminding with a national group of TaxCoach peers. No outside sales pitches. A true meeting of minds, with a room full of smart colleagues who are not your competitors. Free for TaxCoach members.

Don't risk losing your seat. Click here to register now!

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CERTIFIED TAX COACH™ MEMBER EVENT (EAL)
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RECRUITING, MANAGING, AND RETAINING TALENT

Announcing the AICTC’s first ever Lunch-n-Learn Success Series:

“Certified Tax Coach Solutions to Recruiting, Managing, and Retaining Talent”

The future of your dream tax business is dependent on your success in attracting, hiring, managing, and retaining top talent. Join us for the most important workshop series you’ll ever experience.

Each Thursday in the month of August, enjoy your lunch and join us at 2pm EST from the comfort of your own desk as we explore:

  • Why running ads in the Sunday classifieds is a waste of time
  • The #1 key to finding, hiring and keeping winners
  • How to use the CTC staff profile to win the talent war
  • You’ll hear from our guest expert employment attorney how to save yourself from a lawsuit waiting to happen
  • All-new CTC practice aids for hiring, measuring staff performance, and taking control of your office before it controls you
  • The top secrets to get your staff to do what you REALLY want
  • How to attract the top talent on a shoestring budget

Bonus for new CTC members! If you enroll for the September or online Academies by July 31, 2010, you can attend this exclusive members-only series at no charge!

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MEMBER SUCCESS STORY OF THE WEEK (KAV)
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Press Club member Duane Allen had this to say about the most recent Certified Tax Coach™ Academy, when asked what he had learned that he will put into practice immediately at the office:
"I am a new Tax Coach subscriber and I spoke with you last week. I just wanted to let you know that I sold my first tax plan today for $1500.00. I processed an actual plan for this client before he ever entered my office so I knew exactly how much money I could save him on his taxes. After informing him that a $1500.00 investment on his part would gain him over $20,000 in tax savings, closing the sale was very easy. I plan on using Tax Coach to attract and retain new clients who can appreciate the value of tax planning and are more than willing to pay for it. If today's appointment is any indication of future engagements, I will look forward to earning as much in the off season as I do during tax season. Thanks for your help and wisdom."

Barry Baldwin, EA
Baldwin Accounting Corporation
Logansport, IN

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

Even though there was no call yesterday (July 14), calls are generally held each Wednesday, and we're on schedule for next week.

If you're looking for clarification on TaxCoach strategies or additional ways to profit from TaxCoach, join us for the next call, on Wednesday July 21, 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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