Is Homeowners insurance tax-deductible?
Homeowners insurance provides protection from potential damage to one’s house. It typically covers the driveway, fence, garden shed, garage, and other property of the homeowner.
Homeowners insurance coverage for small business owners
You should know that homeowners insurance may cover you up to a few thousand dollars if your business is a small one, such as a lawn-care or gardening business. It is a good idea to check with your homeowners insurance company before you start a business.
You will need to get insurance for your business if it is larger than you own.
If you own a daycare, for example, you would need to have commercial insurance for your business.
How homeowners insurance can be tax-deductible
However, there are two situations in which insurance payments can be deducted from your home.
If you use your home, or part thereof, for business purposes. You might be eligible to deduct the business expense from the home office square footage.
If you are a landlord who receives rental income from your property. Tax-deductible homeowners insurance for the rental portion of a property becomes. If you have multiple properties that are only used for rental income, all homeowners insurance becomes tax-deductible