It’s tax day again and as many of you know, completing and filing a small business tax return for your food truck business is different than completing and filing for your personal tax return.
Three tips for filing for a food truck tax return:
Keep Your Receipts
Hopefully, you’ve collected all of the receipts related to your businesses expenses. Any expense for which you can provide a receipt if requested you can comfortably deduct, but if you lack a receipt, think twice about whether the deduction is worthwhile.
Small costs unsupported by a receipt can turn into a huge headache if the IRS decides to audit you and your return. Take a walk around your office to identify possible deductions. Miles driven on personal vehicles when doing business related driving, the mileage your drive your truck throughout the year, computer equipment and other expenses are deductible.
Don’t Forget Your Start-up Costs
The IRS allows all new businesses to deduct up to $5,000 in start-up costs. These costs can include attorney or accountant fees, training materials, employee training and other business expenses. Any personal training or education you completed for business purposes is also deductible (think culinary school).
Complete All the Forms
The primary difference between personal and business taxes is the number of forms that must be completed. Other difference include your business’ write offs and deductions.
Unlike a personal tax return, a food truck tax return requires the submission of several different forms. One form lists profit and losses, while another calculates the self-employment taxes. Determine which forms you must complete through the IRS website. Completing each one and submitting them together makes it less likely that you’ll be audited.
While business tax forms are not overly complicated, ensure that you use the proper form and research any questions you have. The Internal Revenue Service (IRS) website is relatively easy to navigate and provides answers to most questions. If you don’t feel comfortable filing your business taxes yourself, reach out to your accountant for help.
The Bottom Line
While you may have already (let’s hope you did) submitted for your food truck tax return, do you have any additional tax tips for prospective food truck owners? Share your thoughts on this topic in the comment section, our food truck forum or social media. Twitter | Facebook