With so many rules around insurance, especially regarding taxation, you may be wondering, “Are my business insurance premiums tax deductible?“
With a little rooting around on the Canada Revenue Agency (CRA) website, we can find the answer to this relatively simple question. CRA states that:
“You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business.
The insurance costs related to your motor vehicle have to be claimed as Motor vehicle expenses.
The insurance costs related to business use of work space in your home have to be claimed as business-use-of-home expenses.
In most cases, you cannot deduct your life insurance premiums. However, if you use your life insurance policy as collateral for a loan related to your business, you may be able to deduct a limited part of the premiums you paid. For more information, see Interpretation Bulletin IT-309, Premiums on Life Insurance Used as Collateral.”
Source: Canada Revenue Agency, August 2017
If you have questions about your business insurance, contact us, and we’ll happily provide you with the right information.