If you're a business owner, tax time is likely causing you quite a headache. Getting all your expenses/receipts in order, knowing what tax breaks you qualify for and what you can deduct... the list goes on. While we're not accountants, we are insurance experts -- so we can help you out with one particular deduction. Namely:

Can I deduct my business insurance?

Yes. Yes you can.

According to IRS.gov, business expenses are the cost of carrying on a trade or business. These expenses are generally deductible if the business operates to make a profit. The IRS specifies that expenses that are "ordinary or necessary" are eligible for deductions:

  • Necessary: The expense must be helpful and appropriate for your business.
  • Ordinary: The expense is common in your line of work.
Luckily for business owners, most business insurance is deemed as necessary as long as it's used "for the business's trade, business, or profession."

What does this mean? Well, that you can usually deduct the premiums paid for:
  • General Liability Insurance
  • Professional Liability Insurance
  • Commercial Property Insurance
  • Business Interruption Insurance
  • Cyber Liability Insurance
  • Workers' Compensation Insurance
  • Commercial Auto Insurance -- you'll have to choose between this deduction and the mileage deduction
Of course, each situation is unique -- and we recommend reviewing everything with your business accountant!

Sources: IRS.gov, Deducting Small Business Expenses | Insureon, Reminder: Small Business Insurance is a Tax Write Off | Zacks, Can I Deduct My Car Insurance on Mu Business Taxes?

Photo credit: Phillip Ingham
Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.



10945 Reed Hartman Hwy., Suite 220
Cincinnati, OH 45242