When operating a business in West Hartford, CT, you may be surprised to find that insurance, if it is both ordinary and necessary, can be deducted from taxes. An ordinary business expense means that it is accepted and common in your business type or industry. A necessary business expense means that it is appropriate and helpful for your business or industry. It doesn’t actually have to be necessary. Business owners can deduct these necessary and ordinary costs of the insurance policy as a business expense.<\/p>\n
Since businesses in Connecticut are required to carry workers compensation, then the required insurance policies will fall under the necessary and ordinary rule and can be written off by the business owner. It’s not just workers compensation insurance that can be written off. Other business insurance policies, such as commercial property, professional liability, general liability, and data breach insurance, can also be written off. Since each business is different, each insurance type does need to meet the common and necessary rule.<\/p>\n
There is a difference between personal and business expenses. If you operate a business in your home, you may be able to write off certain expenses that are for the business, such as insurance. This is similar to when you use a car for both personal and business uses; you can only write off the part that is used for business purposes.<\/p>\n
Not every insurance policy is considered necessary and ordinary, so the IRS doesn’t consider it a business expense. Premiums that help cover earnings lost due to disability or sickness, or life insurance, aren’t typically covered as a business expense. A self-insurance reserve also isn’t considered a business expense. An agent at ALLConnecticut Insurance can help you determine which insurance your business needs, but it’s best to contact a tax professional to see which policies can be written off.<\/p>\n
Contact ALLConnecticut Insurance, serving West Hartford, CT, to get a quote on commercial insurance. <\/p>\n","protected":false},"excerpt":{"rendered":"
When operating a business in West Hartford, CT, you may be surprised to find that insurance, if it is both ordinary and necessary, can be deducted from taxes. An ordinary business expense means that it is accepted and common in your business type or industry. A necessary business expense means that it is appropriate and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[358,360],"class_list":["post-449","post","type-post","status-publish","format-standard","hentry","category-commerical-insurance","tag-allconnecticut-insurance","tag-west-hartford-ct"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t