The US tax code is something even the legislators who write it don’t fully understand, so it’s no wonder that even CPAs can neglect to advise you of all of the write-offs you have available as a food truck owner. Today we will cover some relatively simple food truck tax tips to help your food truck truck business.
6 Food Truck Tax Tips Your CPA May Have Missed
Before you send in your next tax bill, make sure you touch base with your CPA to see if you can apply these.
- Entertainment Deductions. Get tax deductions for entertaining staff or guest referrals at your home. Take a picture of the event including the name of your food truck. Check with your CPA to see what percentage of the outlay is deductible.
- Food Testing Deductions. Take deductions for testing food and wine at your home. Make sure to get reimbursed before the food truck’s year end for all purchases of fixed assets or office supplies in your home office.
- FICA Deductions. Confirm that the FICA payroll tax deduction is subtracted from the state tax returns when the FICA tip credit is taken. This is a common error made by many CPA firms resulting in additional dollars of taxes to food truck owners.
- Advertising Deductions. Take advertising deductions instead of charitable donations through your food truck by getting publicity for your mobile food business. Advertising deductions are better deductions for tax purposes than charitable donations.
- Keep An Eye One IRS. Watch the IRS website for special deductions (up to 200%) for giving food to charities after a catastrophic natural disaster. Make sure to get positive publicity in exchange for your generosity.
- Competition Deductions. Use a restaurant competition form to justify deduction of meals. By completing the form and attaching it to a credit card slip, more dollars can be tax deductible for business while obtaining useful ideas for your food truck business menu.
RELATED: Food Truck Sales Tax Basics
The Bottom Line
With these food truck tips and a little effort, you can easily avoid the most common food truck accounting mistakes.