Yes, you can generally write off car insurance as a business expense, but only to the exact percentage that the vehicle is used for legitimate business purposes. If you use your car exclusively for commercial activities, 100% of the insurance premium can typically be deducted. However, if the vehicle is used for both personal and business driving, you must calculate the business-use percentage—either by tracking mileage via an official logbook or using standard deduction rates—and deduct only that corresponding portion on your tax return.
1 votes
Marked as accepted