Can I deduct my entire general liability insurance premium for my business tax deduction?

Thanks for explaining this! I've got a similar situation but with professional liability insurance (I'm a freelance consultant). My policy has a portion that covers my home office equipment too. Would that part still be deductible as a business expense or would it fall under home office deduction?

The equipment coverage portion would still be a business expense since you're protecting business assets. This would be separate from your home office deduction, which is for the use of space within your home. For equipment coverage, just make sure the insured items are actually used for your business and not personal items. If there's any coverage that extends to personal property, that portion wouldn't be deductible as a business expense.

Did you actually have to talk to someone or did the software just analyze it automatically? I hate having to explain my tax situation to people on the phone.

I've seen ads for that site but was skeptical. Does it handle other business expenses too? My landscaping business has tons of equipment purchases and maintenance costs that I'm never 100% sure how to categorize.

The software analyzed it automatically - I just uploaded my policy documents and got a detailed breakdown. No phone calls or explaining things to anyone, which I loved. It definitely handles other business expenses too. I've used it for categorizing my camera equipment purchases, tracking vehicle expenses, and figuring out which client meals were fully vs. partially deductible. It's especially helpful for sorting through receipts and assigning them to the right tax categories.

Wait, how does this actually work? I thought nobody could get through to the IRS, especially during tax season. Is this some kind of premium line or something?

Sounds too good to be true honestly. I've tried calling the IRS at least 15 times over the past two years and either get disconnected or have to wait for hours. How could some service magically get you through when the IRS phone system is so notoriously bad?

It's not a premium line - they basically handle the waiting for you. Their system navigates the IRS phone tree and waits on hold so you don't have to, then calls you when an agent is about to pick up. I was skeptical too! I had called the IRS four times myself and got disconnected each time after waiting 45+ minutes. With Claimyr, I submitted my request, went about my day, and got a call when they had an IRS agent on the line. Honestly shocked it worked, but it saved me hours of frustration.

Yes, all of those insurance types are generally fully deductible as business expenses on your Schedule C. Commercial auto insurance for vehicles used in your business, workers' comp, and liability insurance are all considered ordinary and necessary business expenses. Just make sure you're not also trying to use the standard mileage rate if you're deducting actual expenses (including insurance) for your work truck - you have to choose one method or the other.

Thanks for clarifying! That makes sense about the vehicle expenses. I've been tracking actual expenses rather than mileage, so I'll keep deducting the commercial auto insurance. And good to know about workers comp too - that's a significant expense for my small business.

If a portion of your insurance specifically covers personal protection rather than business liability, you'd technically need to separate that out. Only the business portion would be deductible as a business expense. Usually this is clearly indicated on your policy documents. If it's not clearly separated, you should ask your insurance provider for a breakdown so you can properly allocate the expense. The business portion goes on Schedule C, and the personal portion isn't deductible unless it qualifies under some other deduction category.

You're absolutely right about not needing to overthink the line item breakdown! I went through the same mental gymnastics when I first started my small business. The key thing I learned is that if the entire policy serves your business needs - whether that's liability, equipment protection, or data breach coverage - then it's all considered ordinary and necessary business expenses. The equipment and data breach portions you mentioned are definitely business-related since they're protecting your consulting operations. Just keep good records of your policy documents and payment receipts in case you ever need to show that the coverage was business-related. It's much simpler than we make it out to be sometimes!