Howdy, howdy! I’m Ben, and today I’m going to talk about something that doesn’t involve grilling hot dogs or squeezing fresh lemonade, but it’s just as important—tax write-offs.

Whether you’re running a hot dog cart, a food truck, or a lemonade stand, if you aren’t taking advantage of every tax benefit out there, you’re leaving money on the table.

And let me tell you, as someone who’s been in the game for a long time, every penny counts.

So, let’s break this down step by step so you can keep more of that hard-earned cash in your pocket.

Food and Supply Costs: Don’t Let the Small Stuff Slip Through the Cracks

Your food and supplies are some of the biggest costs in your street food business.

But here’s the deal—are you tracking everything?

And I mean everything.

Every napkin, every cup of extra sauce, every hot dog bun—it all adds up.

Food prices are volatile, and if you’re only checking your expenses once a year, you’re missing out.

You should regularly monitor your costs to stay profitable and make sure you’re not losing out on tax write-offs.

Keep receipts for every single thing you buy—yes, even those two rolls of paper towels or that box of plastic forks.

It’s all deductible, folks.

Equipment and Maintenance: Those New Tires Are Tax-Deductible

Did you just replace the tires on your cart?

Did you pick up some tools at Harbor Freight to fix a squeaky wheel?

Guess what—that’s a business expense!

Keeping accurate maintenance records and saving every receipt for repairs is crucial.

Don’t toss that bill aside thinking it’s insignificant.

Even better, you can also benefit from depreciation on big-ticket items like your food cart, cooking equipment, or even your truck.

Depreciating equipment is like the gift that keeps on giving—it can lower your taxable income year after year.

Fuel and Transportation: Track Every Mile and Every Gallon

If you’re traveling for events or moving from one vending spot to another, your transportation costs are a big deal.

You’ve got two options here:

1. Track Your Mileage: Use a mileage tracking app to keep a log of every mile you drive for your business.
   
   The IRS allows a standard mileage deduction, and trust me, it adds up fast.
   
2. Track Your Fuel Expenses: If you prefer, you can log your actual fuel costs and any transportation-related expenses, like tolls or parking fees.
   
   Either way, don’t let this slip through the cracks—it’s a significant deduction for mobile food vendors.

Marketing and Advertising: Yes, Even Samples Count

Marketing is essential for any successful street food business, and the good news is that most of your marketing costs are tax-deductible.

Sure, you’re probably already tracking the cost of your swooper flags, business cards, or flyers, but don’t forget about the less obvious expenses.

Did you hand out free samples to attract customers?

That’s a marketing cost!

Paid ads on social media?
Yep, those count too.

Even your event fees might be deductible.

Bottom line—if it’s helping you market your business, it could be saving you on taxes.

Labor Costs: Pay Properly, Save Wisely

If you have employees, whether they’re family members or hired help, you need to be tracking labor costs accurately.

That includes wages, benefits, and payroll taxes.

These are all deductible expenses and can help lower your taxable income.

Just make sure you’re paying everything properly and on time to avoid any unnecessary penalties.

Other Tax-Saving Opportunities: Resale Permits and Bulk Discounts

If you’re not already using a resale permit, you’re leaving money on the table.

A resale permit lets you avoid paying sales tax on your cost of goods (COG) when you purchase items for resale.

Helpful: Yes! Tax Exempt Hot Dog Vending – Say What?

Most bulk suppliers—like Sam’s Club, Walmart, Office Depot, and Restaurant Depot—will exempt you from sales tax if you provide a valid resale permit.

This saves you money upfront and increases your profitability.

Tips and Reminders to Maximize Your Tax Write-Offs

Keep Accurate Records

Track every sale, every expense, and every bit of sales tax.

Trust me, the last thing you want is to scramble at tax time or face an audit because you were disorganized.

Helpful: How to Calculate Sales Tax the Easy Way

Consult a Tax Professional

Look, unless you’re also a tax whiz (and kudos if you are), it’s worth hiring a bookkeeper or accountant.

They can ensure you’re taking advantage of every eligible write-off and keep you in compliance with tax laws.

Stay Organized

Whether you use an expense tracking app, a spreadsheet, or full-blown accounting software, staying organized is key.

Don’t wait until tax season to sort through a shoebox of receipts—do it as you go.

Common Mistakes to Avoid

Not Tracking Expenses

This is the big one.

If you’re not tracking your expenses, you’re leaving money on the table and opening yourself up to tax trouble.

Start tracking everything today.

Mixing Personal and Business Expenses

Don’t commingle funds!

Keep your personal and business expenses separate.

Use a dedicated business account and credit card to avoid any confusion.

Trying to Do It All Yourself

I get it—we’re all DIY folks at heart.

But sometimes, you’ve got to let the pros handle things.

Offloading tasks like bookkeeping to an expert can save you time, money, and headaches.

Plus, accurate financial records make it easier to make smart business decisions.

Final Thoughts: Don’t Let Uncle Sam Take More Than His Share

Running a street food business is hard work, but that doesn’t mean you should give away more of your money than you have to.

Tax write-offs are there to help small business owners like you succeed.

Helpful: Collecting Sales Tax – Most Vendors Are Overpaying – Are You?

By tracking your expenses, staying organized, and consulting with a tax professional, you can keep more money in your pocket and reinvest it into growing your business.

If you’re not sure where to start, check out my go-to expert HERE.

Everyl-Ann Archibald
Everyl [@] SmartBookkeepingPartner.com
+1 985-401-1210

She is just incredible and a MUST have help for your business.

Now go make that money—and keep more of it while you’re at it!

I love you.
Talk soon!

PS…
Helpful: Understanding EIN – FEIN – FED ID – SALES TAX ID