Can I write off car insurance?
Vehicle Expensesfreelancerssmall businessrideshare driversreal estate agentscar
Car insurance is deductible if the vehicle is used for business purposes. This can include a vehicle that is used for both personal and business use, but the deduction is limited to the percentage of time the vehicle is used for business. For example, if you use your car 50% of the time for business, you can deduct 50% of your car insurance costs. However, if the vehicle is used solely for personal use, the insurance is not deductible. It's important to keep detailed records of your business use, including mileage logs and receipts, to substantiate your deduction if the IRS ever questions it.