Remember Business Insurance Deductions!

I have talked to a lot of small business owners. Most of them are very clever and hard working people who are very motivated when it comes to running their business. But they may not like to think about taxes and insurance that much. Those things can be regarded as chores that business owners wish they did not have to deal with.
But most businesses need to use different insurance policies as a way to lower operating risks. Insurance, in turn, is an operating expense. A lot of it can be deducted from taxes. This can reduce business tax bills. It also reduces the real cost of the business policies! Spending a little time researching insurance deductions can certainly be worth it!
Business Health Insurance
Small business owners and self employed individuals can usually deduct the premiums paid for medical plans. In fact, this deduction is a big incentive to get and keep proper medical coverage. If you run a small company, a $10,000 family health insurance premium may seem like a big burden. However, if you can turn around and take that premium off of your income when tax time comes, the burden may be smaller.
Are there other types of deductions to consider?
Of course, health insurance is not the only type of business policy you probably need. Almost any type of coverage for your small business will qualify for a deduction.
What Does The IRS Say?

• Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

What does this mean? It means you should find out if the property, liability, and professional policies can be deducted as a business expense in order to reduce your total tax bill.
If you run a home business, you may add business coverage as a rider to your personal auto or home insurance policy. Find out if you can deduct that portion of your bill from you income as a business expense too.
Get Good Tax Information
I am not a tax pro by any means. I have, however, spent a lot of time on the IRS website looking into business deductions. You can go to IRS.gov, at any time, and research your own business tax questions. You will also get good advice from a qualified tax professional or insurance agent.
We all want to do a good job covering our companies and preparing our tax returns! In this case, doing a good job can save you money!

Find out more about business insurance deductions. You can also visit us for online insurance quotes at any time!

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