When running a business, it is important that you consider every possible venue of expense and income that could affect your business. While you are responsible for carrying many forms of insurance, you are also careful about areas you can save money.
Thankfully, you may have options when it comes to deducting commercial auto insurance from your taxes.
Business owners may benefit from carrying commercial auto insurance for many reasons. It minimizes the risk you have to pay out-of-pocket costs after an accident occurs. To help defray the cost of your coverage, most business owners can write it off as a tax deduction. That's a winning situation for any business operator.
Every business should speak to their tax professional about the possibility of deducting commercial auto insurance. Not every vehicle or driver will qualify. Usually, only those owned and operated as a component of the business will. Still, you may find this is one of the best ways for you to reduce your overall costs of taxation. Though it may not be a large deduction, it is one way to reduce your costs.
Commercial auto insurance is tax-deductible in most cases. However, it usually will only apply if the business uses the car as a component of operations. For example, the car you drive to work is not necessarily a tax deduction. On the other hand, the insurance you pay to cover your company’s fleet of delivery trucks may be.
For self-employed individuals, whether commercial auto insurance offers tax benefits again falls on how the vehicle owner uses the car. You may be able to deduct the commercial auto insurance premium on your Schedule C tax form.
Some employees may be able to deduct this coverage on their Form 2106, Employee Business Expenses. This usually applies only if you do not receive payment for expenses related to your car. It also does not apply to situations where you receive mileage for using your car for your business.
If you are looking to possible deduct commercial auto insurance from your taxes, be sure to speak with an insurance agent and tax professional to discuss your options. They will be able to help you identify whether or not you qualify for this benefit as well as helping you save money in other areas. Be sure to shop around and compare quotes when it comes to commercial auto insurance so that you can save money without sacrificing coverage.