When you are choosing the homeowners insurance for your property, you may have questions about tax regulations and whether your insurance purchase can qualify you for a tax deduction. While every case is different because each policy is unique, this is definitely something to speak with your independent agency about. You may be eligible for savings on your taxes thanks to your homeowners insurance purchase.
If you are the owner of the home and you reside in the home, you will generally not be able to take tax deductions or credits to offset your home insurance purchase, according to IRS regulations. However, you can sometimes take tax credits or deductions on the home insurance for the home that you own in certain other circumstances.
If you are operating a business that is fully or partially operated out of your home, you may be able to claim a tax deduction for the home insurance premium. If your home is partially used for business, you will typically be able to deduct an appropriate percentage (a percentage corresponding to the percentage of your home used for business purposes) on your taxes. In the event that you own a home that is used only for business and you do not reside there at any time, you will typically be able to take a full tax deduction for the insurance on the home.
If you are a home owner who rents the home in question to tenants, you will typically be able to deduct your home insurance costs on taxes. If you rent the entire home to a tenant, you may deduct the full amount of the home insurance on that home. In the case that you rent only a portion of the home and reside in the rest – for example, you rent individual rooms out to tenants and your family lives in the rest of the house – you will usually be able to deduct an appropriate percentage of your home insurance costs on your taxes.
When you look for your homeowners insurance, it is essential that you know exactly what you are getting. At Agent Insure, we help you to compare policies from multiple providers at one time. Try our online tool to compare rates now!