High Five! Commercial Property Insurance Is Tax Deductible
In addition to protecting your commercial real estate property, there is even more more good news when it comes to your commercial property insurance policy……it is tax deductible. Yes, you read that correctly. By protecting yourself and your property, you can write this expense off to save on taxes.
No matter where you live or where your property is located, you can take advantage of many federal tax deductions available to commercial property owners across the U.S. For example, you can deduct the premiums you pay for nearly every insurance option for your commercial rental activity, including:
- Fire, theft and flood insurance
- Landlord liability insurance.
- The cost of health and workers’ compensation plans for any employees who work on premises.
A major benefit of commercial property insurance is that it allows you to combine the many types of insurance covered into a single, cost-effective package policy that can help you get far better deals than if you purchased your insurance coverage’s a la carte (Property, General Liability, Business Income, Umbrella, etc.).
Furthermore, in the event that your commercial real estate property is adversely affected by a rare weather event like a flood, you can obtain a tax deduction for all or part of your loss.
Source: The Hartford