It is nearly tax time again, and for many people it can be a scary time of year. Those that are self-employed or small business owners may dread all the paperwork that goes into getting the taxes completed. There are so many different things to know about what can and cannot be deducted. When it comes to commercial auto insurance in Chicago, many Chicago businesses just aren’t sure what is allowed.
Commercial Auto Insurance Services and Taxes
You can never escape paying taxes, that is just a fact of life. However, no one wants to pay more than their fair share so all the things that can be deducted should find their way onto your tax forms. While not everyone can deduct their auto insurance policies, there are some cases where you can deduct a good portion of the premiums that you have paid all year long.
If you are self-employed, and you drive your care for your business, you may be able to get a few tax deductions. If you use your car for work, like to meet with clients or drive clients around, you may be able to add your commercial auto insurance premiums to the Employee Business Expenses line on your tax forms. The IRS has a specific deduction rate that is allowed. You may want to check with a tax accountant if you aren’t familiar with the tax codes governing those that are self-employed.
Some of the professions that may qualify for this tax deduction are real estate agents, wedding photographers, plumbers, or housekeepers.
If you use your own car to drive for your company, then you may also be able to deduct some of your insurance premiums. If your company reimburses you for the use of your personal vehicle, then you will not be able to use the cost of your commercial auto insurance premiums as a deduction.
At Great Northern Insurance Agency, we want all of our clients to save as much money as possible. However, if you are unsure about the tax deductions that are allowed, you should check with a certified tax accountant in order to avoid an audit. Commercial auto insurance policies for your Chicago business may very well be deductible on your yearly taxes, but you want to be sure so that the IRS doesn’t come knocking on your door. Tax time is confusing for everyone!