Is Homeowners Insurance Tax Deductible for Your Business?

Homeowners Insurance is partially tax deductible for business purposes. You can only deduct the portion that is directly used for your business. Accurate tracking and documentation of your business usage percentage is essential.

Key Rules for Deducting Homeowners Insurance

If you have a qualifying home office, you can deduct the home office percentage of your homeowners insurance as part of your home office deduction.

Requirements to Claim This Deduction

• Must have qualifying home office
• Prorate by home office square footage %

How to Document Homeowners Insurance for Tax Purposes

Proper documentation is critical for any business deduction. For homeowners insurance, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 587. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.