Legend has it that the original title of the Yellow Book was the “Golden Rule of Government Auditing” and the cover was supposed to be gold. But when it came back from the printer, the cover was yellow. Whoops. Bye-bye catchy title, hello kitschy title—the Yellow Book.

Until very recently, to get the standard, you had to purchase an actual little Yellow Book from the government. Now the standards and all of the related updates are available on the GAO’s website at www.gao.gov. Very handy and very much unlike the AICPA, to whom I recently paid $135 for the latest standards.

Taxes are not taxes - they are dollars in terms of the net return on investment. All tax professionals need to know the tax-economics of investing for themselves and their clients. This need is accentuated by the rapid rise of the Internet as a broad based and effective investment tool.

The tax professional is in a special position to detect a clients need for financial planning. Preparing returns discloses assets, savings, business entities and family members. Knowledge of the clients assets, activities and the tax characteristics of available entities permits investment matching for maximum after-tax return.

The basic tax characteristics of the primary tax entities are explored and analyzed. Their ability to defer, reduce and eliminate tax is examined. Client goals, purposes and risk tolerances are determined and quanitated using the Sharp ratio. Investments and assets are then evaluated using a variety of tools found on the Internet. Finally, investments and entities are matched to produce the best after-tax return for the client.

This course addresses the practical aspects of §469 and the needed skill to handle pragmatic issues. Fundamentals are reviewed, planning opportunities dentified, creative strategies discussed and evaluated along with re-maining traditional approaches. The goal of this instructive program is to understand and solve problems under §469, with emphasis on tax savings ideas. Readers will overview the proper administration of this complex and often cumbersome provision.