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25 TAX DEDUCTIONS for Home based Food Businesses 2024 [ FULL TUTORIAL LIST]

Posted by Damian Roberti on

Here are 25 common tax deductions that a home-based food business in the U.S. might be eligible for:

Home Office Expenses

  1. Mortgage Interest or Rent: If a portion of your home is used exclusively for your food business, you can often deduct a portion of your mortgage interest or rent.
  2. Utilities: Pro-rated electricity, gas, and water expenses for the business part of your home.
  3. Internet & Phone: A portion of your Internet and phone bills.

Supplies and Equipment

  1. Cooking Supplies: Ingredients, cooking utensils, etc.
  2. Packaging Materials: Boxes, bags, and other packaging supplies.
  3. Small Appliances: Blenders, mixers, scales, etc.
  4. Large Appliances Depreciation: If you purchase an industrial oven or refrigerator, you may be able to deduct its value over time.

Transportation and Travel

  1. Vehicle Expenses: Mileage, fuel, maintenance, etc., for business-related trips.
  2. Travel Expenses: Lodging and meals for business travel.
  3. Parking and Tolls: For business-related trips.

Marketing and Advertising

  1. Website Costs: Hosting, domain, design, and maintenance.
  2. Social Media Advertising: Ads on platforms like Facebook, Instagram, etc.
  3. Traditional Advertising: Flyers, posters, local newspaper ads.

Professional Services

  1. Accounting Fees: Costs related to accounting or bookkeeping.
  2. Legal Fees: If you have to consult a lawyer for contracts or other business-related matters.
  3. Consulting Fees: For hiring experts to help improve your business.

Licenses and Permits

  1. Business License: Fees for local or state business licenses.
  2. Food Handler's Permit: Costs for obtaining or renewing food handling permits.
  3. Health Inspection Fees: Costs associated with health inspections.

Insurance

  1. Liability Insurance: Business-related insurance premiums.
  2. Health Insurance: If self-employed, you might be able to deduct the cost of health insurance premiums.

Employee Expenses

  1. Wages and Salaries: Payments to employees, if you have any.
  2. Employee Benefits: Health insurance, retirement contributions for employees.

Miscellaneous

  1. Business Meals: 50% of the cost of meals during business meetings or travel, per IRS guidelines.
  2. Education and Training: Costs of business-related courses, workshops, or seminars.

Remember that documentation is crucial for all these deductions. Keep detailed records and receipts for all your expenses.