Food Truck

[mbigelow]

My client operates a food truck that is used 100% for business. Are repairs and maintenance on the vehicle deducted as such or do they need to be included in vehicle expenses? I'm fairly certain that repairs to areas used in food prep (e.g. oven, counters,etc.) would qualify as expensible repairs, but what about maintenance like tires, oil changes, tune-ups, etc.? Any insight would be appreciated. Thank you!

[Roland Slugg]

Makes no difference, does it? All the maintenance and repairs are deductible as business expenses.

You're not thinking of the standard mileage rate, are you? The SMR can only be used for passenger automobiles, pickup trucks and passenger vans ... not commercial trucks.

[mbigelow]

Thanks, Ronald, yes, I'm thinking of SMR. I only find the following restrictions in Pub 463 regarding who cannot use the SMR:

-Use five or more cars at the same time (such as in fleet operations),

-Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction),

-Claimed a section 179 deduction (discussed later) on the car,

-Claimed the special depreciation allowance on the car,

-Claimed actual car expenses after 1997 for a car you leased, or

-Are a rural mail carrier who received a qualified reimbursement.

I see no mention of a commercial vehicle restriction. Am I missing something?

[Lion]

Is his food truck really a car?

[Kram BergGold]

My take

New tires, engine repairs, etc are part of the vehicle expense. If you take the SMR you lose these.
Any repairs to the stove etc I would take as a repair on line 21 of Schedule C.

[JudyL]

Thanks, Ronald, yes, I'm thinking of SMR. I only find the following restrictions in Pub 463 regarding who cannot use the SMR:

-Use five or more cars at the same time (such as in fleet operations),

-Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction),

-Claimed a section 179 deduction (discussed later) on the car,

-Claimed the special depreciation allowance on the car,

-Claimed actual car expenses after 1997 for a car you leased, or

-Are a rural mail carrier who received a qualified reimbursement.

I see no mention of a commercial vehicle restriction. Am I missing something?

This food truck is not a "car" and can't use the SMR. You can find the definition of "car" in pub 463 where it says that a "car" does not include a vehicle with unloaded weigh of more than 6,000 pounds, and more importantly, "car" does not include a van or truck that is a qualified nonpersonal use vehicle. That is also defined in pub 463 with the following:

Qualified nonpersonal use vehicles. These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles.

Even if all of the above wasn't true, I don't think using the mileage would be allowed because you would define the main place of business as the locations where you are selling the food. This is very much like the automotive tool salesman and truck that travels to many car dealerships and repair shops.

[mbigelow]

Is his food truck really a car?

No, it's a truck, the standard food truck style that's become so popular in recent years.

[JudyL]

No, it's a truck, the standard food truck style that's become so popular in recent years.

It's a qualified nonpersonal use vehicle, and that is excluded from the definition of "car" so it can't use the SMR. See my post at 5:21 above yours for the definition.

[mbigelow]

This food truck is not a "car" and can't use the SMR. You can find the definition of "car" in pub 463 where it says that a "car" does not include a vehicle with unloaded weigh of more than 6,000 pounds, and more importantly, "car" does not include a van or truck that is a qualified nonpersonal use vehicle. That is also defined in pub 463 with the following:

Qualified nonpersonal use vehicles. These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles.

Even if all of the above wasn't true, I don't think using the mileage would be allowed because you would define the main place of business as the locations where you are selling the food. This is very much like the automotive tool salesman and truck that travels to many car dealerships and repair shops.

Thank you, Judy, I very much appreciate the thoroughness of your replies- most helpful!