Are Business Premiums Tax Deductible? (Garden City, NY)

Every business owner wants to make sure they take advantage of all the tax deductions that they can. And a common question regarding business insurance is whether or not premiums are deductible.

To start with – we all know that taxes are a complicated subject and on any tax matter, it’s important to set aside time to speak with your accountant before making any final 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.

For small business owners or home based businesses, trouble can emerge if you try to use business insurance to cover personal risks or expenses, you don’t want that to happen. So long as your business insurance is used solely to cover risks faced by your business and is not used to try to cover personal situations. It should be fully deductible.

I will say that in addition to talking to your tax professional, it would also be wise to speak with a trusted insurance agent before finalizing any business insurance decisions.

We’d be happy to review your insurance coverage options with you!
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