Restaurant Taxes: 8 Essential Tax Tips & Deductions for Restaurants

Описание: Restaurants are concerned about what they can write off to minimize their taxes. As a restaurant owner, you must watch this video that shares some essential tax deductions and tips for restaurants.

For professional tax help, visit our website: https://www.cogneesol.com/tax-prepara...

Contact us: +1 646 688 2821 / [email protected]

#RestaurantTaxes #TaxPreparation #RestaurantTaxPreparation #TaxPreparationServices #ProfessionalTaxHelp #TaxSupport

Let's get connected on other platforms:

Facebook:   / cogneesol.company  
Twitter:   / cogneesol  
LinkedIn:   / cogneesol  


Save Tax When You Can: Allowances and Tax Deductions for Restaurant Owners (0:12)

1. Property Rental and Maintenance Expenses

2. Property & liability insurance and other policies

3. Depreciation on Property

4. Kitchen Appliances

5. Cost of Food and Beverages

6. Eating Supplies

7. Mileage Deduction

8. Employee Salaries, Insurance, Retirement Accounts, Sick Leaves, Vacation Pay, and Bonuses

9. Fees for Merchant Processing, Legal, Accounting, and Other Professional Services

10. Deduction Against Employee Gifts of up to $25 Per Person, Per Year

11. Marketing and Advertising Expenses


8 Essential Tax Tips for Restaurants Owners: (1:00)

1. Track all transactions made for supplies, such as silverware, grocery, napkins, kitchen equipment, etc. Tracking and maintaining the receipts of expenses always leads to hassle-free tax preparation. (1:03)

2. Tax deductions allow you to reduce the total taxable income; thus before claiming a deduction, understand applicable methods. For example, your restaurant has made $2000 within a specific period and claims $400 as a deduction; you will report the taxable income as $1600 ($2000 - $400) (1:16)

3. Always make notes of mileage when you travel for catering events, make food deliveries, or pick up supplies. Maintain a formal ledger or better use a smartphone app for the same, ensuring all the records are available when your accountant asks for it. (1:30)

4. If you have hired a military veteran, former felon, differently-abled person, or resident of an Empowerment Zone, your restaurant is eligible to claim business tax breaks or tax credits. (1:45)

5. You may deduct the expenses for remodelling or upgrading your restaurant by reporting 75% of costs as necessary costs, and you can capitalize and depreciate the remaining 25% over time as improvement expenses. (1:56)

6. Large investments (appliances, furniture, vehicles) can now be claimed as a lump sum deduction within the purchase year. (2:09)

7. Not to forget the IRS form 8027 – Employer’s Annual Information Return of Tip Income and Allocated Tips. Restaurants must present gross receipts & error-free accounting by involving each staff member to ensure the process goes smoothly. (2:16)

8. Hiring skilled tax professionals would be highly beneficial, especially for financial planning and tax saving. Moreover, for startup restaurants, outsourcing business tax preparations can turn out to be cost-effective. (2:31)