8 Habits of Successful Business Owners

Last week the Roni Deutch Tax Center had another guest blog entry published on FranchiseBusinessReview.com. The new article explains 8 common habits of successful business owners. You can find a few items from the list below, or check out the full blog entry at FranchiseBusinessReview.com.

1. Always Motivated

Everyone knows that you need motivation and drive to be successful in life. However, it is important to remember that when you’re running a small business you need to be able to not only motivate yourself, but motivate your employees as well.

2. Goal Oriented

Successful business owners are goal oriented, they know what they want to achieve and how long it will take them to get there. Additionally, having clear goals for both yourself and your employees will help keep everyone motivated.

3. Time Management

When you own a small business, time equals money. If you want your business to be a success you will need to understand time management, and be able to plan how to best utilize your own time and the time your employees are on the clock.

4. Money Management

In addition to managing time, as a small business owner you also need to be able to properly manage your money. Although money should not be the only reason you open a business, you do need to be able to judge what is profitable and what is not. Fortunately, there are tons of accounting programs that can make money management a lot easier.

Taxes On the Street

Roni Deutch Tax Center launched a new YouTube channel and in our first video we took to the street to see what average Americans know about taxes and the IRS. Check out the hilarious video below!

How to Donate a Vehicle Without Leading to IRS Problems

Over the past few years the IRS has cracked down on vehicle donations, but you should not let the reports of new IRS regulations stop you from making a charitable contribution. Earlier this week the Roni Deutch Tax Center - Tax Help Blog posted a great new article explaining how to donate a vehicle to charity without leading to IRS problems. You can find a section of the blog entry below, or click here for the full text.

Selecting an Organization

One of the most important steps in donating a vehicle is choosing a qualified charity. Although you might want to help a specific organization, in order to claim the charitable contribution deduction you will need to donate your vehicle to an organization that is qualified by the IRS. You can use IRS Publication 78 to find a qualified charity, or just ask the organization if they have proof of their tax-exempt status.

Fair Market Value

Before you donate the vehicle, you will need to determine the fair market value of your car for tax purposes. Be sure to document the condition of your vehicle, and get estimates from a handful of sources. Make sure you find substantial proof to support the value you assign to the car.

Deduction Amount

The deduction you can claim for your vehicle depends on what the charity does with it. If the organization auctions off the car, then you should claim the amount that the vehicle was sold for. However, in some cases charities will give away vehicles to low-income families, or sell it for significantly less than fair market value. In these instances, the IRS will allow you to deduct the fair market value of the vehicle, but you will need proof of both how you determined the value, and proof that the charity sold the vehicle for less than fair market value.

Tax Implications of Early IRA Withdrawals

Last week, the Roni Deutch Tax Center – Tax Help Blog posted an article on the tax implications of early IRA withdrawals. As the blog entry explains, although the purpose of an IRA is to save for the future, it is not uncommon for taxpayers to ‘borrow’ money from their account. Here are excerpts from the article:

Taxes and Penalties

Unless you qualify for a special exemption, every early withdrawal will be subject to a 10% tax penalty. In addition to the flat penalty, you will also have to pay income taxes on the money you take out.

Qualified Distributions

Fortunately, there are tax laws in place that allow taxpayers who have IRAs to take penalty-free withdrawals in certain situations. These instances are known as qualified distributions, and are made to assist those in special financial situations. If you have a Roth IRA which has been open at least five years, distributions can be taken both penalty, and tax-free.

Continue reading at RDTC.com…

Common Franchise Myths Debunked

The Roni Deutch Tax Center had another guest blog entry published on Franchise Business Review.com. This new article debunks a haldful of common franchise myths. If you have ever been mislead to believe that Starbucks is the worlds largest coffee franchise, or thatall chain restaurants are franchises, then you will want to check out this informative new guest blog entry.

All Chain Restaurants are Franchises

Whenever people see a chain restaurant, from Outback to Olive Garden, they always assume it is a franchised unit. However, there are two business models that these chains commonly use. The first involves selling franchises, and the other involves hiring individual store managers to run corporate owned locations. You might be surprised to learn that the following chains do not franchise: Cheesecake Factory, Lone Star Steakhouse, O Charleys, and Bob Evans.

Buying a Franchise Means Guaranteed Success

Although your odds of success are statistically higher with a franchised business, there are no guarantees. Even with a proven business concept, no business venture is without risks. Hundreds of franchised businesses do close every month, however studies show that the most common reason a franchise fails is because they do not follow the system.

It’s Wasteful to Invest in a Franchise, Just Open your own Business

All franchises have an initial fee that must be paid to open a location, and some people may view this as a waste of money. However, studies show that nearly 95% of franchised businesses remain open for at least 5 years, and 94% of franchise business owners consider themselves successful. The money you give the franchisor lets you in on a proven business model that will make your business much more likely to succeed.

Starbucks is the Worlds Largest Coffee Franchise

As we mentioned earlier, there are two business models used by large chains, and although many people assume Starbucks franchises their stores, they actually do not. The only Starbucks locations that are not corporate owned are those inside hotels and grocery stores.

Continue reading at Franchise Business Review.com…

The American Opportunity Credit

Earlier today the Roni Deutch Tax Center – Tax Help Blog posted a new entry explaining the American Opportunity Tax Credit. As the article explains, the new credit is actually just an expansion of the Hope Scholarship tax credit, with a higher maximum and a longer life span.

Credit vs. Deduction

Unlike a tax deduction, which lowers your taxable income, a credit lowers your tax bill (or increases your refund) dollar for dollar. The exact value of a deduction depends on your tax bracket, while credits are a set amount no matter what income bracket you are in.

Value of the Credit

The new credit has a maximum of $2,500 and can also be claimed for up to 4 years.

Eligibility Requirements

According to the IRS only qualifying full-time college students are eligible for the credit. Although it is available for 4 years, the actual amount you are eligible to receive will vary on your income level. Additionally, unlike past credits the American Opportunity Credit is 40% refundable, so even families who do not pay income taxes will be able to take advantage of the tax credit.

New RDTC Corporate Office

I recently moved my Roni Deutch Tax Center corporate offices to a new location, and my incredible team took the time to put some pictures up on my Flickr.com account. Check out a couple of the pictures below, or find the full set here.

7 Most Popular Business Tax Deductions

The Roni Deutch Tax Center submitted another quest blog to be published on the Franchise Business Review blog. The new entry explains the 7 most popular business tax deductions. I have included a segment of the article below, but you can find the full story at FranchiseBusinessReview.com.

1. Startup Expenses

IRS rules allow you to deduct up to $5,000 of your expenses in starting a business. These expenses are known as capital expenses and you can deduct them during the first year you are in business. If your total startup costs exceed $5,000 then the remaining amount must be deducted over the next fifteen years.

2. Auto Expenses

If you use a vehicle for business purposes then you can deduct some of the associated costs. The specific rules around auto expenses are tricky to understand but basically you can either track and deduct all the business related expenses, or take the standard mileage rate.

3. Education or Learning Materials

Any costs associated with business related education can be deducted. This includes both payments made for self-improvement for you and your employees. Night classes, seminars, conferences and even books are great examples of learning expenses.

4. Advertising, Promotions & Publicity

Small business owners usually remember to write off the costs of paid advertisements. However, do not forget that you can deduct any costs related to promoting your business. These expenses vary widely from business cards, printing flyers, etc.

Tax Deduction of the Week: Business Travel & Meals

Earlier in the week the Roni Deutch Tax Center – Tax Help Blog posted a new entry in their deduction of the week series. The new article explains the travel and meal deductions available for business owners and self-employed taxpayers. You can find an excerpt of the entry below, or click here to sign up to the Tax Help Blog RSS feed.

Travel Expenses = Fully Deductible

All travel expenses that you incur as a small-business owner are tax deductible. This includes the cost of travel (plane fare, train tickets, etc.) as well as hotel charges, rental cars, taxi fares, tipping the bellboy, and even dry cleaning fees while traveling.

Food & Meals

As with typical meal and entertainment deductions, you can only write off 50% of your meal expenses. However, when you are traveling for business you do not need to be entertaining a client in order to claim the deduction. You can deduct the 50% of all food purchased, including room service, fast food, and even meals from expensive restaurants.

IRS Regulations

According to the IRS, “you cannot deduct expenses that are lavish or extravagant or that are for personal purposes.” Additionally in order to qualify as a travel deduction you must be “away from the general area of your home for a period substantially longer than an ordinary day's work.”

Claiming the Deduction

You can claim business travel and meal expenses on IRS Form 1040, Schedule A.

Pictures from the RDTC Convention 2010

The third annual Roni Deutch Tax Center convention was held in Reno, NV last weekend and earlier today I was able to add a handful of pictures from the event to my Flickr photo stream. Below are a couple of pictures from the convention, but be sure to check out my Flickr album for the full set of pictures.

How to Keep your Staff Motivated

The Roni Deutch Tax Center recently became a guest blogger for Franchise Business Review. The first entry discussed the most common mistakes made by prospective franchises, and now our second entry explains how to keep your staff motivated. Read a snippet of the post below or head on over to FranchiseBusinessReview.com for the full entry.

If you open a franchised business, and have never managed employees before, then you may find it difficult to keep your staff motivated. However, you need to remember that a hard working team is essential for a successful business. To help the readers of the Franchise Business Review blog who might be worried about keeping a team motivated, we have put together the following list of tips.

Employee Appreciation

Every now and then it is a good idea to do something nice to show appreciation for your team by throwing a party or social event outside of the office. Your crew will feel great to know you were thinking of them, and they will be even more impressed that you went to the effort of throwing a party to show your appreciation.

Company Charity Day

Team-building seminars and events help your staff bond and learn to work together in different situations. One way to do so is by organizing a community service day for you and your staff, as a paid day of work. Whether you plant trees or run a marathon, it will make your team see your human side, and your fun side.

Well-Deserved Promotions

You do not need to give raise to or promote an employee every time an employee does something great, but when they do go above and beyond to get a job done, it is important to show that you noticed and appreciate their hard work.

Company Lunches

Take your team out – or order in – for lunch every now and then. You can use the opportunity to throw an impromptu lunch meeting where you can get feedback and ideas from your employees in a non-formal setting.

10 Common Mistakes Made by Prospective Franchisees

Recently the Roni Deutch Tax Center became a guest blogger for Franchise Business Review.com. The first entry explains the most common mistakes made by prospective franchises. You can find a snippet of the article below.

Opening up a franchised business is an exciting and momentous time for a new business owner. But with all the excitement, prospective franchisees may overlook some possible obstacles and are unprepared when the obstacles arise. To help the readers of the Franchise Business Review blog who might be considering a franchise, we have put together the following list of the 10 most common mistakes prospective franchisees make.

1. Over Investment

Over investing can destroy a project or business completely. Before investing any time or money into your franchise, create a basic budget plan to keep yourself on track. If you do not want to purchase software, there are plenty of websites – like Mint.com – that offer free budgeting tools.

2. Not Having a Plan

You never really know what's around the corner when you are starting your own business. Even so, having a basic plan can help you a lot in the end. Where are you hoping to open your store? How many employees are you planning to hire? How much (time, money, and patience) are you willing to sacrifice? These are all questions you should be asking yourself when you develop your plan.

Continue reading at Franchise Business Review.com…

Go Kings!

Last Tuesday, I was at the Kings vs. Lakers game – along with representatives from the Roni Deutch Tax Center – for Another Tax Night. A local radio station captured the following video featuring me and a handful of local Roni Deutch Tax Center tax professionals. Checkout the embedded video below, or visit RDTC.com to find a tax preparer near you.

Roni Deutch Tax Center and NJ Nets to Will Offer Free Tax Preparation

Less than a month after Roni Deutch Tax Center partnered with the Sacramento Kings for the “Kings Tax Night,” the Roni Deutch Tax Center has also partnered with the NJ Nets to offer a similar promotion to residents of New York and New Jersey. This Friday representatives from local Roni Deutch Tax Centers will be available to answer questions, and all fans who attend the game will receive a coupon that they can redeem at a Roni Deutch Tax Center to get their state income tax done free.

According to NYTimes.com, “the Nets will not be paying their fans’ tax bills, and a similar coupon can be downloaded from Roni Deutch’s Web site. Deutch charges $29 to prepare a state income tax return and $185 for a federal return.” Roni Deutch had no trouble linking her fortunes to the worst team in the N.B.A.; in fact, she said she relished the chance.

“It’s easy to jump on the Lakers’ bandwagon,” said Deutch, who claims to have been the first girl to play Little League baseball on an all-boys team in her home state, California. “The hallmark of a strong company is one that aligns with young companies. I’m a betting woman, and I bet the Nets are going to win a championship this decade.”

Taxpayers: Beware of Anticipation Refund Loans

The other day Charles Prescott, a tax preparer at the Roni Deutch Tax Center in Myrtle Beach, was interviewed by Carolina Live on the difference between refund anticipation loans and refund transfers, which are much better for consumers. Check out the article with the quote from Prescott below.

In this economy, some look for quick and easy cash advances on your tax filings, but consumer advocates say beware.

One of the ways to get in the most trouble is through something called a Refund Anticipation Loan -- or an RAL.

RALs are short-term loans based on the taxpayers expected refund, but it comes with a cost, and in some cases that means astronomical interest rates.

Some major tax preparers offer RALS, but at the Roni Deutch Tax Center in Myrtle Beach, the preparers say stay away.

"As a financial product, they're creating a loan that has absolutely no risk that charges an obscene interest rate. You should avoid these whenever possible," said Charles Prescott, a tax preparer.

But many Americans don't especially the working poor who are enticed by the quick and easy cash and who may not think about the fine print.

"While there are disclosures there, most people just don't read them. Kind of like the 30 pages or mortgage paperwork that no one read a few years ago."

For tax preparers and financial institutions who deal in RALs, they're a high-profit, low-risk loan. For consumers, the fees and interest rates add up quickly.

Continue reading at Carolina Live.com…

10 Reasons to File your Tax Return Early

Tax season is here again, and the RDTC Tax Help Blog has posted a great article discussing reasons why you should file your tax return early, the best of which is simply the stress relief of knowing you’re finished. You can find a few of the tips below, but be sure to read the full list at 10 Reasons to File your Tax Return Early.

1. Less Chance of Late Fees

If you file your return nice and early, the chance of having to pay a late fee is pretty much nonexistent. Just make sure all necessary documents and payments are included with your return to ensure there will be no return service required.

2. Avoid the Crowds

The last two weeks before April 15th tax preparation companies, accountants, and tax professionals become extremely busy. If you want to avoid waiting hours inside a crowded office then you should get your returns filed before busy season begins.

3. Time for Credit, Deduction Research

When you choose to prepare your return last minute, it can be too easy to miss a tax deduction or credit that could put extra money in your pocket. Starting early gives you enough time to relax and spend enough time on your return to find all available deductions and credits.

New Roni Deutch Tax Center Commercials

A few weeks ago we shot another Roni Deutch Tax Center commercial, and I want to share it with you all! Although, the new commercials are now airing in select markets, my team uploaded it to my YouTube channel just so I could share it with all of my blog readers. Checkout out the embedded video below or checkout pictures of the shoot on my TwitPic account.

Questions for the Tax Lady: January 25th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: Roni, does your law firm offer tax preparation services?

No, Roni Deutch, A Professional Tax Corporation does not offer tax preparation services. However, there are dozens of Roni Deutch Tax Center locations across the country offering tax preparation, in addition to a handful of other financial services. To find the Roni Deutch Tax Center location nearest you, click here or call 1-800-230-1083.

Question #2: What are the income limits for the 2010 home buyer’s credit?

Income limits for eligible homebuyers for the 2010 tax year are $125,000 for single buyers and $225,000 for couples. This was a significant increase from the 2009 credit, which had $75,000 and $150,000 limits.

Roni Deutch Tax Center Ready to Help Local Volunteers

Last week a Roni Deutch Tax Center franchisee was featured in a NorthJersey.com news story because of their fundraising effort for their local fire department. I am proud to see the charitable nature of this storeowner, and the enthusiasm their office has for their local community. Checkout the following article from NorthJersey.com.

The Roni Deutch Tax Center located at 24-11 Fair Lawn Ave. in Fair Lawn, will be conducting a fundraiser for the Fair Lawn Fire Department and First Aid Squad. This tax season, from now until April 15, the Tax Center will donate $20 to the fire department and first aid squad for every tax return completed.

"We appreciate everything we can get and it's very nice of them to do something to support our efforts," said Jay Bender, a 39-year fire department volunteer of Company 4.

"The community should be aware and support our fire department and first aid squad," said Roni Deutch Tax Center Manager Lisa Hartensveld.

Last year, the tax center partnered with the first aid squad and raised just over $200. This will be Roni Deutch's second tax season in Fair Lawn, and the company hopes to raise even more money this year.

"The money does add up very fast and this is our way of giving back to the community" said Harensveld.

Every customer who wishes to participate in the fundraiser must mention the fire department or rescue squad when they come in to have their taxes completed. The customer will not be charged the $20 for the donation; it will be donated by the tax center.

For more on the fundraiser, call the Roni Deutch Tax Center at 201-663-9055.

Tax Recordkeeping Tips

Last week the Roni Deutch Tax Center® Tax Help Blog posted a new article on tips to keep your tax records organized. Check out a snippet of the article below, or you can find the full post here.

Old Documents

Before you go out and buy a huge safe to store your piles of financial documents, you might want to consider throwing some of them away. According to the IRS you will want to keep them for at least 3 years or up to 7, depending on your unique situation. There are some documents such as records on appreciable assets that you might want to keep for a few extra years. However, for the most part you should be fine discarding any documents more than 3 years old if you regularly file a return.

W-2s & 1099s

All income related tax documents should be kept somewhere safe. This includes any W-2s for jobs you have worked during the year, and 1099s from any independent contracting work and/or gambling winnings. All of these documents are considered “basic records” and should be kept for at least 3 years. If you have enough room, then you might even want to keep them a little longer just in case.

Receipts

As far as receipts go, too much is better than too little when it comes to storing your tax documents. If you are deducting any expenses, then you need to keep your proof. If you are having trouble organizing receipts of multiple different sizes, then you could always photo copy a few onto a single sheet of paper. This will make the documents easier to organize, and can save room as well.

Tax Settlement Records

If you recently settled IRS back tax debts, then you will need to keep all of your records for at least a few years. That way, if there are ever any discrepancies in the future – such as a new tax lien or wage garnishment – then you will be prepared to get it resolved as soon as possible.