Fuel Your Profits: Write-Offs for the Mobile Kitchen
Running a food truck means you are managing a commercial kitchen and a heavy vehicle simultaneously. The overhead is high—from propane to parking tickets—so missing a deduction directly hurts your bottom line. Use this checklist to organize your expenses for the 2025 tax year.
🚚 The Truck (Vehicle & Kitchen)
- Depreciation: The cost of the truck itself.
- Tax Tip: Most food trucks (over 6,000 lbs) qualify for Section 179 or Bonus Depreciation, allowing you to write off the entire purchase price in the first year rather than over 5 years.
- Retrofitting: Costs to install fryers, ventilation hoods, griddles, and serving windows.
- Vinyl Wrap: The cost to wrap the truck with your branding is 100% deductible as advertising.
- Repairs & Maintenance:
- Automotive: Tires, oil changes, engine repair, and brakes.
- Kitchen: Fixing the generator, repairing the fridge, or servicing the fire suppression system.
- Fuel (Split Tracking):
- Driving Fuel: Gasoline/Diesel for the engine (Auto Expense).
- Cooking Fuel: Propane or generator gas used strictly for cooking/powering the kitchen (Utility/Supply Expense).
🍔 Cost of Goods Sold (COGS)
- Ingredients: Meat, produce, bread, spices, oils, and ice.
- Serving Supplies: Disposable plates, boats, napkins, plasticware, cups, and straws.
- Condiments: Ketchup packets, hot sauce, and napkin dispensers.
- Waste: Track the cost of food that spoiled or was spilled. You paid for it, so it's a deduction even if you didn't sell it.
🏢 Commissary & Location Fees
- Commissary Rent: Monthly fees paid to a shared commercial kitchen for prep/storage (often required by health codes).
- Parking Fees: Fees paid for "spots" at food truck parks, festivals, or breweries.
- Event Fees: Application fees for street fairs or farmers markets.
- Storage: Rent for a separate storage unit for dry goods or extra equipment.
📜 Permits & Licenses
- Health Permits: Local and state health department inspection fees.
- Business Licenses: City vending permits and business registration fees.
- Fire Inspection: Fees for annual fire marshal inspections.
- ServSafe: Costs for food handling certification courses for you and your staff.
💳 Tech & Marketing
- POS Fees: Transaction fees from Square, Toast, or Clover (usually ~2.7%).
- Internet: Data plans for your tablets/POS system.
- Marketing: Social media ads (geo-targeted to where the truck is parked), website hosting, and menu design.
- Apps: Subscriptions to "Food Truck Finder" apps or scheduling software.
🛡️ Insurance
- Commercial Auto: Specific insurance for the vehicle.
- General Liability: Protection for slip-and-falls outside the truck.
- Product Liability: Protection against food poisoning claims.
- Inland Marine: Coverage for the expensive kitchen equipment attached to the truck (often not covered by standard auto policies).
⚠️ Important Compliance Note
- Sales Tax: This is the #1 headache. If you move between cities (or across state lines), the Sales Tax Rate changes. You must charge the correct rate for the specific location where you are parked that day. Modern POS systems (Square) usually automate this via GPS, but you must verify it.
- Meals (Don't Eat Your Profits): You cannot deduct the cost of food you or your family eat. If you make a burger for lunch, you technically need to subtract that cost from your COGS deduction.
- Tips: Tips paid to you or your staff via credit card are taxable income. You must report them.
Disclaimer: This list is for educational purposes and does not constitute legal or tax advice. Deductibility depends on your specific business structure. Please consult with KJC Tax Preparation & Bookkeeping to confirm your eligibility.