Indianapolis Homeowners Insurance Agencies

Are Business Insurance Premiums Taxable? (Carmel IN)

Every business owner wants to make sure they take advantage of all the tax deductions that they possibly can. And a common question regarding business insurance is whether or not premiums are deductible. Well, to start with, we all know that taxes are a very complicated subject and on any tax matter, it is really important to set aside time to speak with your accountant before making any decisions right now. That said the IRS recognizes insurance as a cost of doing business, which means in most cases, business insurance premiums are going to be tax deductible. However, for small business owners or for home based businesses, I have to say this, it needs to be said that trouble can emerge. If you try to use your business insurance to cover personal risks or personal expenses, you do not want that to happen. So long as your business insurance is used solely to cover risks faced by your business and is not used, you know, to try to cover personal situations, then it should be fully deductible. Now, I will say that in addition to talking to your tax professional, it would also be really wise to speak with a trusted insurance agent before finalizing any business insurance decisions.

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