MENU
SEARCHAn avid Hunger Games fan, Larry Kopsa applies lessons learned from the popular series to help salon owners play the tax game and defeat the IRS.
I vigorously read all The Hunger Games books and saw the movie twice. I saw it once with my wife and then a second time with my 15 year old son. I could not help to think how much Suzanne Collins post apocalyptic novel reminded me of income tax planning. Actually, to tell the truth just about everything reminds me of business and tax planning. I could not help to think that we taxpayers are just like Katniss and her family, way out here in district 12, controlled by the evil capital… the IRS.
Just like in the book, every year citizens get picked to compete in the tribute except in our case, if we are making any money at all, everybody is forced to compete by going through the gruesome task of preparing a form 1040. Like Katniss, taxpayers need a mentor like Haymitch Abernathy to teach them. That would be me, except I am not a drunken mentor. You are the definitely the “stylists” like Cinta whose job to make the tributes look their best. My job is to teach you so that you survive the tax game.
As your trainer, here are the lessons I would train you before you enter the arena. Pay close attention! You must know these rules and be able to act before the stroke of midnight on December 31st or you will not survive. Remember… big brother can see your every move.
Good records. As your trainer, I would first want you to understand the importance of good records. Without documentation you will miss legal deductions; and if Game Makers (the IRS) come to check you out, you will lose.
Don’t cheat. If you cheat and get caught, the Game Makers can force the end to you. You might think you can get away with cheating, but the Game Makers have ways of finding out. In the world of the IRS you are guilty until you prove yourselves innocent. Miscalculate or make a reasonable error and you get penalized. Cheat and you have committed a felony and could end up in jail.
Post it on time. As you get close to year-end, don’t forget to mail your checks for deductible items before the end of 2012 to insure the write off. You can claim the deduction in the year that the check is dropped in the mail. The check does not have to clear the bank in order for it to be deductible.
Understand the game. You can use credit and debit cards to pay bills, but make sure you understand the rules. Credit cards are deductible at the time that you actually charge the item where as a debit card is not deductible until the bill has cleared the bank.
Plan bonuses intentionally. Many times, the end of the year is the time to do bonuses to staff. If you do the bonuses in 2012, they are deductible this year. If you wait until after the first of the year, you do not get to take the deduction until 2013.
Know equipment rules. If you have equipment needs, in 2012 you can write off up to $139,000 of equipment in the year of purchase and placement in service. This amount is scheduled to drop to $25,000 in 2013. Either way, if you do have equipment needs, this a great way to slash your taxes. Remember, the equipment not only has to be purchased but also has to be placed in service.
Plan accordingly. Rates are scheduled to go up in 2013. It is important to do pretax planning to make sure that you have income in the proper year. If your income is going to be higher in 2013 it might be wise to save some expenses until 2013 so that they are deducted at a higher rate.
Here are some additonal routine deductions that many salon owners miss. Keep your eye out for them:
audio tapes and video tapes related to business skills
bank service charges
bank association dues
business gifts
business-related magazines and books
casual labor and tips
coffee and beverage
consultant fees
office in the home
office supplies
online computer services related to business
shoes recommended by doctor
parking and meters
petty cash funds
postage
promotion and publicity
seminars and trade shows
taxis and bus fare
telephone calls away from business
laundry
Assuming that you win the Tribute and return to Site 12 safely, it is important to remember to start planning again for next year. Just like The Hunger Games you will find yourself going into battle again next year so start training right now.
Larry Kopsa is a partner with Kopsa Otte CPAs and Advisors, an accounting firm that has specialized in the areas of salons, spas and distributors for more than 20 years. For more information visit kopsaotte.com or call 402-362-6636. Catch Larry Kopsa’s blog at kopsaottesalon.blogspot.com.
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
The former CFO of Perdue Farms and owner of Hardy Seafood, Terry Owens delivers a wealth of wisdom and strategies for entrepreneurs in his new book, "Business is Simple."
After scaling her single-location salon business, SALON TODAY 200 Honoree Amy Pal recently sold her six-location Whip Salon for seven figures. Using the six Ps for maximizing a business's value, she's ready to help her peers do the same.
Buried inside the One Big Beautiful Bill Act are federal solar tax credit changes that deserve your attention now. Two of the credits that matter most to commercial property owners, the Investment Tax Credit and the Production Tax Credit, are still available, but only if you move fast. A third, the Commercial Building Energy Efficiency Deduction, has a hard termination date that is closer than most people realize.
Up to 40% of hair stylists ghost the salon interview stage, leaving owners trapped playing endless phone tag with uncommitted applicants. This data-driven report breaks down why traditional job boards create recruitment friction and reveals the modern messaging strategies high-growth salons use to get pre-qualified talent to actually show up. Learn how to transition from cold calling to high-conversion conversations that protect your time and fill your chairs.
Sponsored by Beautista
Spit fests, hostile threats, and even an overachieving matchmaker--SALON TODAY readers share their craziest client tales and how their team handled these tough situations with professionalism and grace.
Keeping your appointment book full when clients are in vacation mode takes more than a good Instagram post. It takes a plan. The 2026 Summer Marketing Calendar from Meevo gives salon, spa & med spa owners a month-by-month roadmap with sharp themes, key opportunity dates, and campaign ideas specifically designed for the beauty & wellness industry. Here’s to your summer season working as hard as you do!
Sponsored by Millennium Systems International
AI is transforming the beauty and wellness industry, and the future is about empowering people, not replacing them. Discover how Phorest AI helps salons, spas, and med spas across North America respond faster, personalize every visit, and keep human connection at the heart of the client experience.
Sponsored by Phorest
Owner Michaella Blissett-Williams credits her General Manager Gloria Hortua with [salon] 718's year-over-year, double-digit growth and says she's been able to scale the company to eight locations because she can rely on Hortua to manage daily operations.
Shine Time: Aluram’s High Shine Line Delivers Moisture and Shine with Clean Ingredients
Sponsored by Aluram
Elyse Rogers is an uplifting presence at The Headroom who makes the team feel heard even in stressful situations. Owner Danielle Cherewyk sings her praises in this installment of Meet the Manager.
Despite a slight and predictable decline in client traffic for Q1, resilient pricing power is driving year-over-year revenue growth in salons. The KIM Report's Alain Audet reviews the data and what it's telling us about the state of professional beauty.
Same-store revenue grew just 2% for the second straight year—and new guest visits declined across every segment of the industry. The 2026 Benchmark Report reveals where growth is actually happening, which verticals are pulling ahead, and what the data says about where your business stands right now.
Sponsored by Zenoti
Hair restoration is entering a new era driven by regenerative science. This paper explores how Exosome technology is transforming treatment outcomes by targeting hair loss at a cellular level. Discover why EXOGROW is leading this shift.
Sponsored by Dermapenworld
A salon brand is much more than a logo. In this thought-provoking blog, Leon Alexander, Ph.D., walks you through the difference. SALON TODAY suggests sharing this article with your team and leading a discussion at your next huddle, asking the team to define your business's brand.
