Category Archives: Restaurant Taxes

DC Ballpark Fee for Restaurants

DC already has unfavorable taxes for restaurants – they charge a minimum gross receipts tax, don’t recognize pass-through entities for nonresident partners/shareholders, impose a sales tax on service charges, impose a high-income tax rate, and more. The DC minimum gross receipts tax (franchise tax) is imposed on your gross sales regardless of your profit. The

The NOL and Excess Business Loss Limitations for Restaurants

Gone are the days when you could freely generate a loss for a restaurant using bonus depreciation and then offset your other sources of income using those losses. The losses you can claim from your restaurant or bar against your other sources of taxable income, such as wages or investment income, are now limited. These

Profits Interest: Tax Free Equity in a Restaurant Partnership

If structured effectively, issuing sweat equity can reward and incentivize employees in a restaurant group. However, when the equity in an LLC (taxed as a partnership) is granted, the value of that equity is generally taxed upon vesting, thus subjecting the employees to tax without receiving any cash. The value of the equity is also

2024 Guide to Filing Restaurant Taxes

Looking for better tax-saving strategies for your restaurant? The 2024 Guide to Filing Restaurant Taxes: Tips and Tricks, hosted by TouchBistro, is here to help! Rather than simply explaining how to organize your tax documents and walking through the basics of how to file taxes for a restaurant, this guide provides a comprehensive roadmap of

Tax Considerations When Paying Artists in Your Restaurant, Bar, or Nightclub

When paying a DJ, musician, comedian, or other performer in your restaurant, bar, or nightclub, there are a variety of forms you need to request, prepare, and file with the IRS. Sometimes, you may also need to withhold taxes and remit to the IRS. The forms you request from and file on behalf of your

Deducting NY and NYC Taxes Paid by Restaurateurs

Most New York restaurant owners cannot deduct their NYC and NYS taxes paid because they don’t itemize deductions for federal tax purposes. Even when they do itemize, their state and city deduction is limited to $10k, which is tiny compared to the state taxes a profitable restaurant owner pays. This can have devastating tax consequences

Guaranteed Payments vs Distributions

For many restaurant owners, guaranteed payments and distributions to owners may not come up until it’s time to file the annual tax returns. If you’re a restaurant client of The Forks CPAs, you’ll hear about guaranteed payments and distributions throughout the year because the distinction impacts your finances and taxes significantly. But what exactly are

Preparing for the Impact of Phased Out Bonus Depreciation

Since 2018, restaurants had the luxury of deducting 100% of their build-out expenses and other fixed asset purchases, such as equipment and furniture, by claiming bonus depreciation on their tax returns. Starting in 2023, restaurants will no longer have this luxury. Bonus depreciation will be phased out over the next four years to 80% in

Maximize Tax Savings For Your NYC Bar or Restaurant

From a tax perspective, is it more beneficial for restaurants and bars in New York City to set up their tax structure as a partnership or an S-corporation? Restaurateurs have received mixed messages from their CPAs over the years, especially after the Tax Cuts and Jobs Act (TCJA) introduced the Qualified Business Income (QBI) deduction,