I currently work as a server/bartender, and saving up to get a food truck off the ground. Suppose I claim tax exempt on my W-2 (with the restaurants I work for) and use 70% of gross funds for Capital Investment in my business, while using 30% for living necessities. Will I only pay income tax for the 30%? Would there be tax impositions on the other 70%?
Ask a CPA before doing anything
No, it's not that simple. You have a certain income, you have deductions and you pay taxes on the rest. If you can claim business expenses on everything you spend on the new business you will pay significantly lower taxes than if you didn't. But you definitely don't just pay taxes on the other 30%.