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|A |6Special Program |A ^1TaxMaster |Aͺ |6Special Program |A
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^Cfrom
^CIsland Computer Services

^C^1NOTE:
   This package is not a stand-alone program, but rather a set of templates.  
   Its use requires LOTUS 1-2-3 <tm> or a compatible spreadsheet program.
   (Note that it is NOT compatible with our Steinman Spreadsheet or with 
   ExpressCalc!  It is, however, compatible with Borland's Quattro, which is a 
   good choice if you're just now shopping for a spreadsheet program: see the 
   Marketplace column for more information, or call (800) 831-2694.)


TAX TALK
   It's never too early to think about your taxes, but there are times when it's
too late!  A lot of people think tax season is from January 1 to April 15, the
following year.  By that time, it's too late to plan for any surprises in your
taxes.  All you can do then is to pay the tax you owe, and sometimes even worse,
a penalty!

   Now you don't have to worry about any of these nasty surprises.  With
TAXMASTER, you can track your taxes during the year and make sure you don't get
burned.  In fact, you can even take the offensive and plan your financial moves
for tax implications before executing them.  (The programmer's financial planner
uses TAXMASTER to show his other clients exactly what his proposed investments
will do for them!)  Do you own rental property?  You already know what a
nightmare computing your active and passive losses is under tax reform is.
TAXMASTER ends the nightmare in under 5 seconds!  Change a number, and five
seconds later everything is recalculated, automatically!  Is your IRA fully
deductible?  That too is automatically calculated!  Did your employer give you a
taxable stock distribution this year?  You'd better enter it into TAXMASTER to
check it out.  All this and much, much more.

   Of course, once the year ends, you still have to prepare your taxes and send
them to the IRS.  Available in late January 1989 will be the 1988 Tax
Preparation version of TAXMASTER.  It is functionally identical the tax planner
you have here, but will be updated to the current IRS forms.  The price for the
1988 Tax Preparation version of TAXMASTER is $50.00.  If you order on or before
January 15, 1989, we'll include the 1989 Tax Planner (shipping late March 1989)
for free.  After January 15, the Planner will sell for $25.00 when sold with the
1988 Preparer, or $50.00 by itself.  For you professional tax preparers, there
is TAXMASTER.PRO, which is consists of the regular TAXMASTER package plus 6
smaller versions of the main template, to allow for much faster processing of
smaller returns.

   TAXMASTER prints IRS acceptable forms.  It is also easy to customize to your
particular needs: build tables, list items out, leave reminders or explanations
for future reference.  Don't forget, there are versions for Apple II and
Macintosh too.  To place an order, call us toll-free at (800) 826-7146 (Visa and
MasterCard accepted) or use the handy order form template, TMORDER, on the disk.
If you have any questions or comments about TAXMASTER, please contact us.
Island Computer Services, 3501 E.  Yacht Drive, Long Beach, N.C.  28465  (919)
278-9483.

TAXMASTER - 1988 PLANNER INSTRUCTIONS

LOADING INSTRUCTIONS

   BOOT COMPUTER AND LOAD LOTUS 123 (or other compatible spreadsheet).  IF YOU
HAVE 2 DRIVES, PUT THE TAXMASTER DISK IN DRIVE 2.  USE /FR AND LOAD TM88PLAN.
ON A 1 DRIVE SYSTEM, SWAP THE LOTUS DISK AND TAXMASTER DISKS IN DRIVE 1 AS
NECESSARY.

   IF YOU USE A  MEMORY-RESIDENT ADD-IN PROGRAM AND HAVE 384K RAM, YOU WILL NEED
TO UN-INSTALL THE OTHER PROGRAM OR THERE WILL NOT BE ENOUGH MEMORY AVAILABLE FOR
TAXMASTER.  IF YOU HAVE MORE THAN 256K, THIS SHOULDN'T BE A PROBLEM.  CONTACT US
IF YOU NEED ASSISTANCE.

   Use of this program assumes some user familiarity with LOTUS 123, however
using this particular spreadsheet will mainly consist of moving the cursor and
typing numbers into appropriate cells.  Consult your manual if you need
assistance.

   The forms are laid out in a vertical, contiguous manner.  To move between the
different forms, use the arrow keys or the page keys.  To move directly to a
specific form, use the GOTO command (F5).  Enter the form name or select the
name from the menu.  For example to find Form 2441, look for FORM2441.
Schedules are a bit different.  To find Schedule E, enter SE.  The 1040 Form is
listed first, followed by the Schedules, Forms, and tax computation tables.  A
complete "map" of the spreadsheet is presented at the end of these instructions.

   As previously mentioned, using this spreadsheet consists primarily of moving
the cursor and typing numbers.  The program will recalculate all the tax forms
when manually commanded.  It takes approximately 5 seconds to recalculate the
spreadsheet.  To input information, simply use the arrow keys to move the cursor
to the appropriate cell and type in the appropriate number.  If you try to type
something into a cell and all that happens is the computer making an annoying
beep, this means that the cell is "protected" and probably contains a formula to
do a calculation for you.  Cells that contain this type of information (or
lookup tables) will not allow you to enter data which would overwrite the
formula.  These are the cells that do the work (and presumably the main reason
you bought this package) and precautions have been taken to prevent accidental
alterations.  If you need to alter TAXMASTER to suit your needs, turn off the
CELL PROTECTION (/WGPD).  Remember to turn the protection back on when you are
finished with your modifications (/WGPE).  Do not attempt to alter the original
TAXMASTER disk!  Always use a copy to work on.

   This spreadsheet probably contains a few forms that you will not use.  It is
strongly suggested that they simply be ignored as opposed to deleting them.  If
you do need more space, the best method to blank out text on a form you won't be
using.

   Be very careful when sorting any part of this spreadsheet.  This is a sure-
fire way to render your results totally useless.  If in doubt, don't sort!

   Do not totally rely on the descriptions listed in the spreadsheet.  Most of
them are taken verbatim from the actual forms, but some have been rewritten or
condensed due to space limitations.  Always use the actual tax forms for
definitive guidance.  This is especially true of YES/NO questions.  To answer
YES/NO questions, type YES or NO as appropriate.  Always use capital letters.
Some YES/NO questions also come with 1/0 choices.  These number are needed to
guide the program to compute the proper options.  Take special care in entering
these numbers.

   The spreadsheet uses default or initial values for most of the entries.  Most
of these are $0.00 and will change by entering a number in its place.

   Special instructions should be followed for some parts of the spreadsheet.
The most important of these is in determining the proper filing status.  This is
computed in Form 1040, lines 1 through 5.  Enter a 1 next to the appropriate
status.  Be sure the other status numbers are 0.  The filing status number will
in turn be used to choose the appropriate tax lookup table for the tax
computations.  An error in this part of the spreadsheet will yield inaccurate
totals.

Form 1040 - TAXMASTER automatically calculates your Standard deduction, compares
it to the Schedule A total and selects the proper value.  It also calculates the
tax in several ways and chooses the appropriate value.  Line 7a has been added
for excess reimbusements on Form 2106.  Enter your IRA contribution in the
worksheet area between page 1 and 2.  The deductible amount(s) are patched to
lines 24a and b.  The program will compute and choose the proper tax owed on line
37.  Use Form 8606 if you want to make a nondeductible contribution.

Schedule E - be sure to enter the appropriate 1's and 0's next to the YES/NO
questions.  These digits are the keys to proper calculation of the active/passive
limitations.

Schedule R - enter the number 1 on the appropriate line.  If you aren't using
this form, leave all nine lines blank.  Due to the physician's signature
requirements, it is suggested that this form not be submitted to the IRS in
computer form.

Schedule SE - line 11a should be blanked and the appropriate spouse's income
entered if married, filing jointly and SE only applies to one spouse.

Form 2119 - a line has been added to list the number of months the residence was
held.  This number is used to determine whether a gain on the sale is taxable as
a long or short term gain.

Form 6251 - The Alternate Minimum Tax is automatically calculated.  Unless you
have alot of tax shelter losses and depreciation expenses, this will probably
not affect you.

Form 4562 - this is not linked to other forms in the program.  You link the
values you need to the appropriate form.  If you need more than one Form 4562,
copy it and paste into the program as many times as needed.

Form 8615 - The "Kiddie Tax" form is built into TAXMASTER.  This only applies for
children under 14 with interest and dividend income over $1000.

Form 8582 - This form will automatically calculate rental loss limitations, if
applicable.  Other passive activities must be manually entered on lines 2a
through 2g.

Form 8598 - This is not linked to Schedule A!.  Be sure to manually move the
mortgage or personal interest to Schedule A, as applicable.

PRINTING THE FORMS - The default width is 96 columns (12cpi).  Be sure to enter
the appropriate printer codes under the Print Setup.  This will accomodate
columns A through H.  To use the print macro, GOTO (F5) PRINT.  Enter a 1 next to
the forms you want to print, a 0 next to those you don't.  Execute the macro by
typing Alternate-P.  Be sure your printer is set up prior to printing.  (In the
preparation version of TAXMASTER, the printout is IRS acceptable, but the output
must be on "green bar" or lined paper.  Print one form per page (the macro will
do this automatically).  The printout of the 1040 Form is NOT IRS acceptable!  You
must manually transfer the values to an IRS printed 1040 Form.)

HARDWARE NOTES - The templates can be copied to 5.25", 3.5" or hard disks.  Due
to the large size of this program, you will not have much free space left in a
384K machine.  Blank an unused form if you need more room.

CUSTOMIZING - Since this is a spreadsheet, the capability for user constructed
modifications is virtually limitless.  Tables can be set-up and patched into the
existing forms.  New forms can be added.  Notes and reminders can be placed to aid
in your tax preparation.  Tax data from other LOTUS spreadsheets can be imported
and linked.

"MAP" OF TAXMASTER
1.    FORM 1040  - 1988 INCOME TAX FORM-for estimation only
2.    SCHEDULE A - ITEMIZED DEDUCTIONS
3.    SCHEDULE B - INTEREST AND DIVIDEND INCOME
4.    SCHEDULE C - PROFIT OR (LOSS) FROM BUSINESS OR PROFESSION
5.    SCHEDULE  D -  CAPITAL GAINS AND LOSSES
6.    SCHEDULE E - SUPPLEMENTAL INCOME SCHEDULE
7.    FORM 4562 - DEPRECIATION AND AMORTIZATION
8.    SCHEDULE R - CREDIT FOR ELDERLY AND  DISABLED
9.    SCHEDULE SE - COMPUTATION OF SOCIAL SECURITY TAX
10.   FORM 2119  - SALE OR EXCHANGE OF PRINCIPLE RESIDENCE
11.   FORM 2441  -  CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES
12.   FORM 3903  - MOVING EXPENSE ADJUSTMENT
13.   FORM 2106  - EMPLOYEE BUSINESS EXPENSES
14.   FORM 6251  - ALTERNATIVE MINIMUM TAX
15.   FORM 8582 - PASSIVE ACTIVITY LOSS LIMITATIONS
16.   FORM 8606 - NONDEDUCTIBLE IRA CONTRIBUTIONS
17.   FORM 8615 - KIDDIE TAX
18.   FORM 8598 - HOME MORTGAGE INTEREST
19.   MISCELLANEOUS - TABLES AND CALCULATIONS USED ABOVE

UNANTICIPATED DECISIONS & UNDOCUMENTED FEATURES
   Most people call these "bugs".  If you find one, PLEASE call us immediately!
Due to the complexity of the program, and the number of internal self-checking
statements, there may be the appearance of a bug at times.  Always re-check the
instructions to both TAXMASTER and the tax forms if something doesn't look
right.  If you're still uncertain, give us a call.  We will help you sort out
the problem in an expeditious manner.

   The purpose of TAXMASTER is to make planning and preparing taxes easier.
User feedback has inspired a number of improvements, most notably the PRO
version.  Do you have suggestions for improvements?  Please tell us what they
are and we'll attempt to incorporate them.  We are also looking to expand our
product line beyond TAXMASTER.  Do you have any particular needs?  Again, let us
know.

TAXMASTER IS WRITTEN AND DISTRIBUTED BY

          Douglas M.  Smith
          Island Computer Services       (919) 278 - 7444 (day)
          3501 E. Yacht Drive            (919) 278 - 9483 (evening)
          Long Beach, NC 28461           (800) 826 - 7146 (orders only)

TAXMASTER is a trademark of Island Computer Services
COPYRIGHT  1985,1986,1987,1988

DISK FILES USED BY THIS PACKAGE:
^FTMORDER.WKS
^FCHANGES.WKS
^FTM88PLAN.WKS
^FFORMW4.WKS
