Can Insurance Premiums Reduce Your Business Income?
Are You Missing Business Tax Deductions?
Covering your business may take a big bite out of your bottom line. The good news is that many types of business insurance policies can be deducted from your income, and this actually reduces the real cost of business insurance.
Where To Learn About Business Tax Deductions?
I am not a tax expert. However, the IRS must be the tax expert of all tax experts, and they just happen to publish a pretty good page about business tax deductions that you can refer to at any time. You may also want to consult with a tax professional so you can maximize your allowed tax breaks.
Basic Business Tax Deductions You Might Miss
Health Insurance For Business Owners And The Self Employed
There is usually a way to deduct health insurance premiums if you are self-employed, or a business owner. Employees, who could sign up for a group plan at work, are a lot more limited. But then again, employees usually get part of their premiums paid by the company that provides the coverage.
Note: It looks like we saw the end of the health insurance self-employment tax break. Qualified self employed people can deduct health insurance premiums, but cannot get an extra break off of self employment tax.
Other Business Insurance
Your deductions may not be limited to health insurance. That topic just seems to be on everybody’s mind these days.
The IRS Says:
Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.
In my hunble, non-tax professional opinion, that would apply to any sort of liability, property, or professional coverage you need to run your business.
Home Based Business Deductions.
If you work out of your home, for example, you may purchase an extra rider on your homeowners insurance policy, to cover business property, or an extra rider on your auto insurance policy to cover business ues. Find out what percentage of the premiums could be deductible as a business expense!
