Tax Hacks to Write Off Vending Machine Purchase & Expenses

Tax Hacks to Write Off Vending Machine Purchase & Expenses

Use these hacks to write off your entire vending machine purchase and the expenses that come with it. 

  1. Machine Depreciation: Use Section 179 to depreciate 100% of the value of a machine in Year 1. This means if you finance a machine for 10% down ($600) you can write off $6,000. You can also write off the $200/mo payment that come from financing the machine.
  2. Vehicle: Every time you restock or service your machine, you're using your vehicle for business. You can deduct either: the standard mileage rate (67 ¢ per mile in 2025) or the actual vehicle expenses (gas, maintenance, insurance, and depreciation). Even if you use your personal car, you can track business miles and write that portion off. 
  3. Home Office: If you manage your vending machine business from home, you can deduct part of your home expenses. That includes your rent or mortgage interest, utilities, and internet, proportional to the square footage used for your business. The IRS also offers a simplifies option that's $5 per square foot, up to 300 sqft.
  4. Cell Phone: That phone you use to check sales, contact vendors, or locate new spots? You can deduct the portion of your cell bill used for business. If you have a dedicated phone line for the business, the entire cost is deductible. 
  5. Internet: If you monitor machine status online or communicate with location owners via email, your internet counts as a business expense too. Deduct the percentage used for business, or 100% if it's dedicated solely to the vending side. 
  6. Business Clothes: You can't write off streetwear, but you can deduct clothing branded with your business name or required for your job. Think company branded polos, safety vests, or work uniforms you can wear while servicing your machine.
  7. Business Meals: Networking lunches, scouting new locations, or meeting a property manager? You can usually deduct 50% of the cost of those meals when they serve a legitimate business purpose. Keep receipts and note who you met with and why. The IRS loves documentation. 
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