Food Truck Tax Deductions

Posted by Damian Roberti on

I'm going to give you the 29 food truck tax deductions. These are things you'll want to jot down, take them to your accountant and see if there's even more or if there are some of these that may apply to your food truck business. The biggest expense is going to be the food truck. And one of the biggest investments you're going to make, whether it is a new truck or even a used truck, does not matter. When you make your first purchase, of course, it's the food truck. One of the best ways to learn more about food truck taxes is Google "Food truck tax filing", "Food truck depreciation irs", "How to do taxes for food truck"".

If you've got a food truck that is an older version or even potentially a new one, if you start to retrofit it and build it out, keep track of all those expenses. Now, number three is going to be the formation of the LLC, the business aspect of it. Any fees involved with that are definitely something that you can use as a tax deduction. Number five is food safety courses, if it is required by the county or city that they have either a food handler's car or take a food safety course. Keep track of how many miles you travel. You may want to also know more about "what taxes do food trucks pay", "How to start a food truck business 2021", "Food truck business plan video""

There is also a tax deduction for your food truck. Small wares are any of the plates, napkins, or utensils that you're using to serve the customer. Take it to your accountant and see how much of that can actually be deducted. If you entertain a client, you can deduct a hundred percent of that as well. Mileage is also something that could be potentially a great deduction because you're traveling everywhere.

Facebook or social media advertising is number 13. Some events charge you a flat fee to get in or a percentage of your sales. There are pieces of equipment that are obviously used to drum up business. Most places, states, counties, or cities will require you to have a commissary kitchen where your food truck will be known to prepare the food. That's going to be the area in which you will prepare your specific ingredients and food for the day.

"Food Truck lease Agreement"

You cannot operate a commercial food business from your home; that's totally different. And most of the time, you cannot park in the driveway in your neighborhood because that's normally not allowed. If you're going to operate a food truck, it's important to keep track of the expenses associated with your point of sale system (POS) and website. A POS system is where you actually do transactions through a card scanner or something that can adapt to your phone. You also have to sign up with a company to do the transactions; you've got to obviously have a payment processor.

"What Permits do I need for a food truck in California"

Some people charge you a low fee for the usage of it each month; others charge a transaction fee. When you operate a food truck, you have to make sure that you pass a fire inspection. Most of them will require you to have a fire extinguisher, so keep track of the expenses for those. You can potentially take advantage of some of these home-based business deductions if you have an office dedicated to the food truck business. The food truck wrap is also something that's potentially tax deductible as well. 

"How Much do Food trucks Cost to rent"

Keep track of any and all food expenses. If you're creating a brand, I've seen this and it's very, very cool. Spend the little extra money to have uniforms. Your team, your group of team on your food truck, reflect your brand on the shirt, the hat, or whatever it may be that they're wearing. Make sure there are fire extinguishers and all that.

Sometimes you may have to pay for those inspections, and it just simply recuperates the cost of having the fire department come out and check and make sure everything's good. So that is a quick rundown, not all inclusive, but a handful of 29 different food truck tax deductions that could apply to your food truck business.