Nothing grinds your gears like tax season; Knowing what to deduct can come in clutch.
Is my Commercial Truck Policy deductible?
Yes, you can generally deduct commercial semi truck insurance as a business expense if the vehicle is used for business purposes. The IRS allows businesses to deduct ordinary and necessary expenses related to their operations, which includes the cost of insuring trucks used for transporting goods or providing services. As the operator of business that requires a truck, your premiums are a business expense and therefore a deduction, reducing your overall taxable income.
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However, it’s essential to keep accurate records of your expenses in the event you need to distinguish between the usage the truck gets for business, and the usage the truck gets for personal use. This should be easy if the vehicle is solely used for business – you can deduct the entire insurance premium. If it’s used for both personal and business purposes, you’ll need to calculate the percentage of business use and only deduct that portion of the insurance cost. This isn’t usually an issue with semi trucks, but consulting with a tax professional can help ensure you properly navigate these deductions and remain compliant with IRS regulations.
In the meantime, knowing the premiums are deductible is worth considering when picking a policy. Keeping your business rolling with the right coverage is not only a smart policy; it’s a tax-reducing one. Request a quote from one of our agents today.