One location or four. Brick-and-mortar or wheels. We review the §45B tip credit, §179 expensing, and COGS so the margin in your books matches the return we file.
Independent operators can miss savings by skipping the FICA tip credit, miscoding meals, or expensing leasehold improvements the wrong way.
The 7.65% employer FICA you paid on tips above the minimum wage comes back as a non-refundable credit. Best part: you also keep the wage deduction, so it is creditable and deductible. We pull POS tip data, calculate the credit per server, and file Form 8846.
IRC §45B; §3101; Form 8846; Rev. Rul. 2012-18Owner and staff meals, vendor meetings, and chef R&D tastings are 50% deductible. The 100% rule for restaurant-provided meals expired after 2022. We code each meal correctly so the auditor does not zero out the whole line for one mis-coded $400 dinner.
IRC §274(n)(1); Notice 2021-25 (expired); Rev. Proc. 2024-25Branded chef coats, server aprons, slip-resistant shoes required by the employer, kitchen laundry service, gloves, hairnets. All deductible when not adaptable for street wear. We separate uniform spend from owner clothing so the deduction holds up.
IRC §162(a); Rev. Rul. 70-474; Pevsner v. CommissionerCombi ovens, walk-ins, hood vents, dishwashers, POS terminals, fryers. Up to $1.16M §179 expensing for 2024 with 60% bonus depreciation on the rest. Food trucks: the truck itself is 5-year MACRS and qualifies for bonus. We time the placed-in-service date against your bracket.
IRC §179; §168(k); Rev. Proc. 2023-34Build-out drywall, electrical, plumbing, HVAC, lighting placed in service after 2017 is Qualified Improvement Property with a 15-year life and 60% bonus depreciation in 2024. A $180K build-out throws off $108K of first-year deduction. Most prior preparers miss this entirely.
IRC §168(e)(6); §168(k); CARES Act §2307 fixFood, beverage, paper, and direct labor land in COGS, not "supplies." We rebuild your chart of accounts so gross margin is clean. Food trucks crossing state lines need apportionment and source-state sales tax. We file the part-year and use-tax returns so a county fair gig does not become a four-state audit.
IRC §263A; Treas. Reg. §1.471-1; state economic nexus statutes25-seat Orlando bistro, $640K revenue, $128K in declared tipped wages across six servers in tax year 2024. Prior CPA had never filed Form 8846.
$14,200 FICA tip credit recoveredTip credit calculated on declared tips above the §3121(q) minimum-wage floor, claimed on Form 8846 and flowed through the K-1. Wage deduction preserved. We also amended 2022 and 2023 returns for two additional years of credit.