More Tax Deductions

More Insurance Deductions: The taxpayer can deduct malpractice insurance that covers personal liability for professional negligence.

Workers Compensation: Set by state law, this covers any claims for bodily injuries or a job related disease suffered by employees in the taxpayers business, regardless of who is at fault.

State Unemployment Insurance: Contributions made to a state unemployment fund. These are tax deductible if they are consideredtaxes
under state law. Check with your state law for more information.

Overhead Insurance: This insurance pays the business overhead expenses if the taxpayer has long periods of disability which is caused by injury or sickness, and is tax deductible.

Business Interruption Service: This pays the taxpayer if their business is closed down due to fire or other cause, and is also tax deductible.

Life Insurance: This is only tax deductible if the taxpayer is not directly or indirectly the beneficiary under the contract.

Automobile Insurance: The insurance paid that covers the vehicles used in the course of the taxpayer's business. If the taxpayer uses a vehicle partly for personal use, only the business use is deductible. Also, if the taxpayer uses the standard mileage rate, the automobile insurance cannot be deducted.

One very important thing, the taxpayer cannot deduct the expenses in advance, even if the expenses are paid in advance. For example, if you paid insurance for 2007 and 2008, you can only deduct the expenses for 2007, and the 2008 insurance the next tax year.

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Tim Watson is a tax preparer during the season who also runs an SEO directory and an iPod directory. You may use this article as is provided the resource box stays intact.