Answers · Deductions, assets & depreciation
Can a Business Deduct Insurance?
Ordinary business insurance premiums are generally deductible, subject to special rules for life insurance, prepaid coverage and owner benefits.
How it works
The rule, and what it turns on.
Entity type can materially change health-insurance reporting.
Example
$12,000 annual commercial liability policy is generally an operating expense.
Common mistakes
What we see go wrong, and what we do instead.
- Deducting owner personal policies with no business nexus.
A better approach
- Create separate accounts for commercial insurance, workers compensation and owner benefits.
Authority
Where this comes from, so you can check it.
IRC §§162, 264; entity-specific benefit rules.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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