Line 15 on Schedule C of the tax form relates to “Insurance,” which refers to the cost of insurance premiums that you paid during the tax year to protect your business.
Insurance expenses that you may be able to deduct on Line 15 include:
- Liability insurance: This type of insurance protects your business from legal claims made by customers, clients, or other third parties.
- Property insurance: This type of insurance protects your business property, such as buildings, equipment, and inventory, from damage or loss due to theft, fire, or other covered events.
- Business interruption insurance: This type of insurance provides coverage for lost income or expenses incurred during a business interruption, such as a natural disaster or other unforeseen event.
- Health insurance: If you are self-employed and pay for your own health insurance, you may be able to deduct the cost of your health insurance premiums on Line 15.
It’s important to note that there are certain requirements and limitations associated with deducting insurance expenses. For example, if you are deducting health insurance premiums, you must meet certain criteria in order to qualify for the deduction.
You should keep accurate records of your insurance expenses, including receipts, invoices, and other documentation, in case you are audited by the IRS. If you have any questions about how to report insurance expenses on your tax return, it’s a good idea to consult with a tax professional or accountant.