Deductibility of Business Insurance Premiums

Businesses are allowed to deduct the costs of doing business from their income for the determination of federal taxes. Premiums paid for most business insurance are deductible. Both IRS Form 1040 and IRS Publication 535 include worksheets designed by the IRS to guide the business owner in calculating the deduction. Both IRS Publication 535 - Business Expenses and IRS Publication 334 - Small Business Tax Guide, are online and an excellent resource for business owners. Specifically, Chapter 6 of Pub. 535, provides some solid starting information on the deductibility of business insurance premiums.......NEXT