Is a food truck tax deductible.

In this video, we go over food truck tax basics. When you establish your food truck, which might cost you anywhere from tens of thousands of dollars up to maybe even a hundred gram, anything from ovens, ranges, grills, generators, and other significant pieces of equipment must also be considered in addition to the, up to code refrigeration systems. Experts actually recommend depreciating these expense-related equipment over a few years to maximize tax benefits. Number two, food truck event traveled.

Although many food truck operators stay in their immediate neighborhood, others travel across the country to participate in huge food, truck festivals and competitions. If you're looking for meals, not to mention even gas, you can deduct these expenses from your taxes each year. As you travel from state to state to do food truck events, all of those expenses related to your food truck business and our tax deductible. Keep receipts and accounts for each of these expenses when you're calculating the total cost of the event as well. If you're at a hotel or motel, if you're not obviously sleeping in your own food truck and food during the event, such as entrance fees licenses or permits that you might need for that event, even though it's in another state, that too is a tax deductible expense.

Tax deductions can be claimed in two different ways, including mileage and vehicle related expenses. If you're traveling a hundred miles, 200, 300 miles, 50 cents per mile adds up. Some business owners keep track of both throughout the year and then claim them the one that provides the largest tax reduction at the end of each year, which is a great idea if you want to save the most money. Take a look at those food truck apps and those for mileage number four, your food truck insurance. Some states require food trucks to have a anchored commercial kitchen, meaning that they have to be attached to a actual physical address of a commercial kitchen.

The day to day operations of your food truck are important because they can add up very quickly. So food trucks have a variety of constant expenses. Small wears as they're known in the food industry, these are things that are disposable. If it's the packaging for your food product that you're selling through your food truck, all of that is of course expenses related to it, advertising or marketing. Even if you're running, even marketing ads, believe it or not on Facebook to promote, you know, an event  your food truck's gonna be at all of those advertising and marketing expenses whether they be just a couple hundred dollars a month or even just a few thousand,.

all of them add up and they are tax deductible, commissary rental. And those mostly, as I just mentioned before, are a must. You have to have your truck attached to one, so those are also tax deductible. So keep in mind these five really huge tax deductible items that you can necessarily deduct every year, bring them to your accountant, let them know, Hey, this is a list of a few things. And if you have any questions about your food truck business, let us know down in the comments and we'll definitely get to it as soon as we can. All of those are expenses.

 Is a Food Truck Tax Deductible