Which commercial insurance policies can you deduct from your taxes? We’re in tax filing season with the IRS. April 15th marks the deadline for filing personal and business tax returns for 2023. During this time, one of the most common questions among small business owners is: “What expenses can I deduct?”
Generally, the IRS allows deductions for costs considered ordinary and necessary for the operation of the business. Among these costs are various insurance coverages.
For instance, deductible insurances include workers’ compensation insurance, general liability insurance, employee health insurance, errors and omissions insurance, business interruption insurance, and commercial property insurance.
However, not all commercial insurance is deductible. The IRS doesn’t permit the deduction of insurance premiums used to secure a loan, nor can you deduct premiums paid for an insurance policy covering lost earnings due to illness or disability or life insurance policies.
Nevertheless, you can deduct other expenses, such as rent and interest paid on loans used for your business.
If you have questions about which business-related insurance you can deduct, call Univista Insurance, and a specialist will help you identify all deductible policies. Which commercial insurance policies can you deduct from your taxes?
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