Is the commercial insurance payment tax deductible?
Is the commercial insurance payment tax deductible? Having business insurance protects the business from financial loss related to property damage, worker injury, lawsuit expenses, or medical liability bills.
Naturally, having commercial insurance requires the payment of a monthly premium, the amount of which will depend on the benefits and coverage included in the package.
It is not a secret to anyone that, although we understand that insurance is very important, because it can mean the difference between the success and bankruptcy of a business, nobody likes to pay for insurance.
The good news is that from January to April the 2022 taxes are declared. And among the deductible expenses is the amount you have paid for commercial insurance.
In other words, when you are preparing the documentation that you are going to present to the tax preparer, in addition to the expenses for payments to staff, retirement plans, rent payments, taxes, gas costs, and tolls for the company car, meals, and business trips, you must include, among the deductibles, the expense that the business has had in commercial insurance.
Keep in mind that deducting is subtracting a certain amount from the amount that must be paid as tax. In other words, declaring what you have spent on business insurance will ease the tax burden on your business. Is the commercial insurance payment tax deductible?