What Can I Write Off in Taxes as a Restaurant?

All of your restaurant's operating costs are deductible on your tax return. This includes:

  • The cost of your restaurant’s property rental or lease, mortgage interest, or depreciation if you own your restaurant outright

  • The cost of kitchen equipment and property improvements

  • The cost of furniture, tablecloths, plates, bowls, cups, and eating utensils

  • The cost of take-out containers and napkins

  • Food costs, also referred to as cost of goods sold (COGS)

  • The wholesale cost of items that you offer to retail customers for sale, such as branded coffee mugs and cookbooks

  • Employee pay and benefits such as vacation pay, contributions to retirement accounts, employee gifts up to $25 per employee per year, and employee meals that are eaten on-site

  • Professional licenses, such as food handling licenses

  • Fees for professional services, such as accounting, software, payment processing, and legal fees

  • Office supplies

  • Work uniforms

  • Liability insurance

  • Business vehicle rental, lease, loan interest, or depreciation if the vehicle is used for work (deliveries and grocery shopping) at least 50% of the time.

  • Business-related mileage for deliveries and grocery shopping (not commuting mileage), using the standard mileage or actual cost method

  • Maintenance expenses

  • Marketing and advertising expenses

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