Food cost and prime cost, tips and the FICA tip credit, sales and occupancy tax, startup costs, and cost segregation for restaurants, food trucks, bakeries, and hotels.
40 guides, each written by a CPA licensed in the US and Canada.
Bakeries and cafes deduct ingredients and packaging as COGS, equipment under Section 179, and startup costs under IRC 195, with $5,000 deductible at once.
US TaxBakery/cafe tax profile: - SSTB classification: NOT an SSTB (food manufacturing/retail) - QBI deduction: Full 20% available at any income.
US TaxBakery and cafe workers (bakers, baristas, counter staff, kitchen assistants) are employees. Classification by role: Always employees: - Bakers and pastry.
US TaxHotel real estate still qualifies for 1031 exchange treatment after TCJA, but furniture, fixtures, and equipment no longer do.
US TaxBakery and cafe owners with thin margins must carefully manage estimated tax payments. Set-aside percentage for bakery/cafe owners: For a sole.
US TaxFood trucks earn unevenly across seasons. The annualized installment method lets owners pay lower quarterly estimates in slow months and higher payments.
US TaxThe FICA tip credit is a dollar-for-dollar federal income tax credit available to food and beverage establishments for the employer share of FICA taxes.
US TaxFood trucks are not SSTBs, so the full QBI deduction is available at any income level. Food truck operators face unique entity structure.
US TaxFood trucks collect and remit sales tax on prepared food in most states. Permits, health department fees, and commissary requirements vary by city.
US TaxFood truck operators deduct cost of goods sold (food and packaging), commissary rentals, fuel, permits, insurance, and truck maintenance.
US TaxThe IRC 1060 purchase price allocation drives how much of a hotel you can expense in year one. Due diligence checklist and day-one structuring.
US TaxA cost segregation study can reclassify 20-40% of a hotel's building cost into shorter-lived assets eligible for bonus depreciation.
US TaxWhen a hotel renovates, the old component's basis doesn't just vanish, and the new one doesn't automatically get the fastest schedule available.
US TaxMost hotel owners end up with more entities than they expected, and that is usually the correct outcome rather than a sign of overcomplication.
US TaxHotel F&B runs like a restaurant with extra rules layered on top: department-level cost of goods sold, employee meal limits under IRC 119 and 274.
US TaxHotel franchise fees split into a 15-year Section 197 intangible, deductible royalties under IRC 162, and PIP costs classified by asset type.
US TaxHotel franchise fees, key money, and management fees each get different tax treatment. Here is how IRC 197 15-year amortization and IRC 162 deductions apply to each.
US TaxHow lodging tax compliance scales across a multi-property, multi-state portfolio. Multistate lodging tax compliance is a registration and reconciliation.
US TaxHotel occupancy tax (also called transient lodging tax, hotel tax, room tax, or bed tax depending on where you operate) is a tax that state, county.
US TaxHow hotels get owned, from a single-asset LLC to a multi-investor LP to a REIT holding the real estate through a taxable REIT subsidiary.
US TaxHotel payroll runs 30-45% of revenue and spans tip credits, FICA tip credit, overtime exemptions, seasonal FUTA rules, and banquet service charges.
US TaxA franchise PIP letter is a construction scope, not a tax category. A PIP is a franchise requirement, not a tax classification.
US TaxProperty tax is typically the largest single fixed cost a hotel faces, surpassing insurance, franchise fees, and management fees in most markets.
US TaxMost hotel PIP dollars belong on 15-year QIP or 7-year FF&E schedules with 100% bonus depreciation; only structural work stays on 39 years.
US TaxRevPAR tracks performance, not when revenue hits the books. Under ASC 606, room revenue is generally recognized night by night as the guest occupies the room.
US TaxHotel owners can deduct FF&E through bonus depreciation, OTA commissions as ordinary expenses, and most guest amenity costs.
US TaxHousekeeping, bellstaff, valets, and servers each face different tip-reporting and FICA rules. The tip credit can cut the hotel's payroll tax.
US TaxRestaurant meals and catered food are taxable as prepared food in nearly every state with a sales tax. How states treat delivery fees, service charges, tips and alcohol.
US TaxFood cost and prime cost determine whether a restaurant makes money. A restaurant that does not know its food cost percentage weekly is flying blind.
US TaxMost restaurants that close are profitable on paper but run out of cash. Here is how to build a weekly cash flow forecast and manage seasonal swings.
US TaxMost restaurants start as an LLC. When net income exceeds $60,000-$80,000, an S-corp election can save self-employment tax.
US TaxRestaurants waste 4-10% of purchased food before it reaches a plate. Here is how to track inventory, account for waste, and deduct spoilage losses.
US TaxThe lease is a restaurant's largest fixed cost after labor. The base rent is the number that appears in the listing. Covers industry-specific deductions,.
US TaxHow the tip credit, tipped minimum wage, and overtime rules work for restaurant payroll, with common mistakes and state-by-state differences.
US TaxWhich restaurant pre-opening costs are deductible immediately, which must be amortized over 180 months under IRC 195, and which are capital expenditures.
US TaxRestaurants with 10 or more tipped employees must file Form 8027. If reported tips fall below 8% of gross receipts, the IRS requires tip allocation.
US TaxSolo operator (no employees): Solo 401(k). $24,500 employee deferral + 20% of net SE income (employer contribution), up to $72,000 combined (2026).
US TaxSection 179D lets hotel owners deduct up to $5.94 per square foot for qualifying energy upgrades, but the OBBBA cuts off new projects after June 30, 2026.
US TaxUSALI is the standard hotel chart of accounts and P&L format, splitting rooms, F&B and other departments from undistributed costs and fixed charges. Setup and monthly close.
US TaxFood truck prep cooks, cashiers, and servers are almost always employees under IRS rules. The consequences of misclassifying them as 1099s.