Many of you are wondering if you can make a good living as a mobile food vendor. If there is profit, how much? Are there any issues in this industry that will persuade me from becoming a mobile food vendor?
Tax Deduction for Mileage
A tax deduction for mileage is allowed for each mile driven for tax purposes when using your personal vehicle for business purposes. The tax deduction for mileage value changes each year on a per mile basis. It approximates 57 cents per mile.
One of the more significant expenses for the small business owners is income taxes. Since most small businesses are tax pass through entities, it is beneficial to the business to have the least amount of net income in order to reduce the tax obligations of the owner(s). This is achieved by making sure every dollar expensed is deductible for tax purposes.
In any industry, especially transportation, it is essential for the owner of a business to understand how much it costs per mile to operate his vehicle, trucks or fleet. The formula looks simple and in reality it is; but you must understand the underlying elements to truly appreciate and comprehend the calculation.