"Greg was very easy to work with. I had a complicated scenario that he was able to manage, with complete confidence. I would highly recommend using him."
"I've had a great experience working with Greg Monaco. He is incredibly detail-oriented and thorough, making sure everything is handled correctly and fully compliant. What really stood out to me is how…"
"Monaco CPA is excellent to work with! Greg is detail-oriented, knowledgeable, and prompt. He's been instrumental in helping me get my business off the ground with a strong financial foundation that includes…"
"If you need a CPA or accountant in Livingston or Essex County, I highly recommend Greg at Monaco CPA. My wife and I switched because my old accountant often didn't return my calls. Greg is different. He…"
"I've been working with Greg Monaco, CPA for a few years now, and he's honestly saved me real money with both personal tax help and crypto tax stuff. He answers quickly, breaks things down in a way that's…"
"I've been working with Gregory Monaco CPA LLC for my taxes, and I couldn't be happier with the experience. Extremely professional, thorough, and organized from start to finish. He takes the time to explain…"
Reviews reflect individual experiences and do not guarantee similar outcomes. Tax savings and other results depend on each person's facts and are not typical of all engagements. No reviewer was compensated for providing a review.
Tight margins. Cash and card sales. Commissary fees. Sales tax in every town you park in.
Food trucks operate at the intersection of restaurant economics and mobile logistics, and the tax picture reflects that complexity. You're managing food costs, labor, vehicle expenses, commissary or shared kitchen fees, event permits, point-of-sale technology, and multi-jurisdiction sales tax compliance, all while maintaining margins that leave very little room for error.
Sales tax is one of the most complicated compliance areas for food truck operators. The taxability of food sales in New Jersey depends on the type of food and how it's prepared: unheated grocery items (bread, unprepared foods) are generally exempt; prepared, heated foods sold for immediate consumption are taxable at 6.625%. When you park at different locations (a farmers market in one town, a corporate event in another, a festival in a third), each location potentially has different local rules to layer on top of the state rules. A catering engagement in New York City triggers a separate set of NYC sales tax rules entirely.
The food truck itself is a significant deductible asset. As a business vehicle used exclusively for commercial food service, it can be depreciated under MACRS (5-year property) or immediately expensed via Section 179 or 100% bonus depreciation (permanent under OBBBA §70301 for vehicles acquired and placed in service after January 19, 2025). Generator equipment, cooking equipment, refrigeration units, point-of-sale systems, and custom build-out costs are also deductible business assets. NJ does NOT conform to federal bonus depreciation - all bonus depreciation must be added back on the NJ return; assets are then depreciated under regular MACRS without the bonus, over their normal recovery period, for NJ. NJ also caps §179 at $25,000 vs. the federal $2,560,000 - so a $150,000 food truck fully expensed federally requires NJ depreciation over its MACRS recovery period on the excess above $25,000.
Monaco CPA covers food truck tax preparation, planning, and compliance for solo operators and multi-truck fleets alike.
Personal Review
Start with the contact form. Share the basics and expect a response within 1–2 business days with a clear next step.
Get StartedView PricingMulti-jurisdiction sales tax: taxability of prepared food varies by state and municipality; compliance required at every location
NJ sales tax: prepared, heated food sold for immediate consumption taxable at 6.625%; grocery-type items generally exempt
COGS and inventory tracking: food cost percentage (typically 28-32% for trucks) must be tracked; IRC §471(c) small business inventory exception available
Cash and card reconciliation: mixed payment methods require daily POS reconciliation; cash-intensive classification can trigger IRS scrutiny
Vehicle depreciation: food truck as 5-year MACRS property; Section 179 and 100% bonus depreciation available; listed property rules for vehicles
Commissary/shared kitchen rental costs: fully deductible as business rent; properly documented in lease agreement
Event permit and vending license fees: deductible as business licenses and regulatory costs
Employee vs. owner labor: owner's own labor is not deductible (SE income instead); employee wages are deductible
Catering multi-state exposure: events in NY, PA, or CT require separate sales tax compliance and potentially nonresident income tax filings
Generator fuel and maintenance: deductible as vehicle and equipment operating costs
Entity structure: sole prop vs. LLC vs. S-Corp analysis; food truck liability exposure argues for at minimum LLC formation
NJ CBT minimum tax: the tiered $375+ annual minimum applies once the entity is taxed as an S-Corp (a default single-member LLC owes no CBT minimum); plan for this fixed cost before electing
Tax preparation, planning, and compliance services tailored to your industry.
Annual tax returns integrating all revenue sources: event sales, catering contracts, private bookings. COGS tracking and food cost percentage analysis.
Monthly QuickBooks Online bookkeeping with POS integration (Square, Toast, Clover). Daily cash and card reconciliation. Food cost and inventory tracking.
NJ sales tax registration and quarterly filing. Food taxability analysis by product and service type. Multi-state catering sales tax compliance.
Food truck depreciation planning: Section 179 and 100% bonus depreciation (permanent, OBBBA) for the truck, cooking equipment, refrigeration, generators.
LLC formation for liability protection. S-Corp election analysis modeled on your actual numbers - no fixed income threshold decides it. NJ LLC annual fees and, for S-Corps, the CBT minimum tax factored into analysis.
Estimated payment calculations for seasonal food truck operators with high-summer / low-winter income patterns.
Free Tool
No fixed income threshold decides the election. Use the free calculator to screen sole prop SE taxes vs. S-Corp payroll taxes, including NJ compliance costs - then model the full return before electing.
Screen Your S-Corp NumbersHave a different question about food trucks tax or accounting? Send Greg a message - all inquiries are answered within 1-2 business days.
It depends on what you're selling and how. New Jersey exempts most unheated grocery-type foods but taxes prepared, heated food sold for immediate consumption at 6.625%. For a typical food truck selling hot sandwiches, cooked meals, or heated street food, the sales are almost certainly taxable. Cold beverages in sealed containers may be exempt, while fountain drinks and mixed beverages are taxable. Candy and confections are taxable. Bottled water is exempt. The practical takeaway: if you're running a hot food truck in NJ, assume your sales are taxable and register with the NJ Division of Taxation for a seller's permit. If you cater events in NYC or other states, those jurisdictions have their own food taxability rules that differ from NJ.
Yes, but the tax rules for business vehicles depend on how the truck is used. A food truck used exclusively for commercial food service (not personal transportation) is a business asset, not a 'listed property' subject to the luxury auto limitations that apply to passenger vehicles. It can be depreciated as 5-year MACRS property, immediately expensed under Section 179 (2026 federal limit: $2,560,000), or fully deducted in year one using 100% bonus depreciation (permanent under OBBBA for property acquired and placed in service after January 19, 2025). A truck worth $80,000 could generate an $80,000 federal deduction in year one. NJ caps Section 179 at $25,000 and does not allow bonus depreciation, so plan for the NJ tax hit in years with large vehicle purchases.
Food cost tracking starts with your purchases. Keep all supplier invoices organized by date and category. Your cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases minus Ending Inventory = COGS. Under IRC §471(c), small businesses with average annual gross receipts of $32 million (2026, Rev. Proc. 2025-32) or less can use a simplified inventory method. You can treat the cost of inventory items as deducted in the year purchased rather than tracking ending inventory precisely. This exception (added by TCJA) significantly simplifies bookkeeping for food trucks with modest revenue. Your target food cost percentage should be 28-32% of revenue; if it's significantly higher, that's a profitability problem (or a recordkeeping problem) that needs attention before tax time.
All business licenses, permits, and regulatory fees are deductible as ordinary business expenses under IRC §162(a). This includes: NJ food establishment permit, county and municipal health permits, event vending permits, farmers market vendor fees, fire department inspection fees, and commissary or shared kitchen rental agreements. Annual permit renewals are current-year expenses. One-time setup fees for commissary buildout or equipment installation may be capitalized and depreciated. The $75 NJ annual-report fee is also deductible. The $375-or-more NJ S-corporation minimum CBT is deductible only when the business is taxed as an NJ S corporation; a default disregarded single-member LLC does not owe that corporation tax.
At minimum, an LLC is worth considering for liability protection. A food truck with employees, customer-facing food service, and a vehicle creates meaningful liability exposure that a sole proprietorship doesn't protect against. An LLC is simple to maintain in NJ ($75 annual-report fee; a default single-member LLC owes no NJ CBT minimum tax - the tiered $375+ CBT minimum applies once the entity is taxed as an S-Corp). No fixed net-profit threshold decides the S-Corp election. Screening illustration at $100K net: sole prop SE tax approximately $14,129; S-Corp with a $50K salary approximately $7,650 of combined FICA - a gross payroll-tax difference of roughly $6,479 before compliance costs, QBI, and income-tax effects, which can shrink or reverse it. For seasonal food trucks where net profit varies significantly year-to-year, the LLC without S-Corp may be simpler. I'd analyze your specific income pattern before recommending.
NJ Tax
Food trucks in New Jersey sell prepared food, which means every sale is subject to sales tax. But the rate changes depending on which town you're parked in, and tracking it across multiple locations is where most food truck owners slip up.
Read GuideTax Tips
Food truck owners have a unique set of deductible expenses, from the truck itself to ingredients, event fees, and generator fuel. Here's a full breakdown of what you can write off and how to maximize your deductions for 2026.
Read GuideNJ Tax
NJ allows 100% loss netting on the NJ-1040 without itemizing and withholds 3% on certain casino and sportsbook winnings when federal withholding applies (lottery prizes over $10,000 face separate 5%/8% withholding). Unlike the new 90% federal cap under OBBBA, NJ eliminates phantom income for break-even bettors.
Read GuideWork with a NJ CPA
Start with the contact form. Greg will review your situation and reply with a clear next step.
Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.