Commercial property insurance belongs on Line 15, insurance.
Why line 15
Insurance on the building, contents, inventory and equipment you use in the business is insurance other than health, so it goes on line 15. The premium is deductible even though the property itself is depreciated, because a premium buys coverage for a period rather than an asset. Coverage on property you rent out as real estate belongs on Schedule E instead of Schedule C.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so commercial property insurance lands on Line 15 without you sorting it.
Start for freeWhat commercial property insurance is confused with
- Schedule E, schedule e, rental real estate
- If the insured property is rental real estate rather than premises you operate from, the premium belongs on Schedule E, not Schedule C.
- Line 30, line 30, business use of your home
- Coverage on the home you live in follows the home office calculation on line 30 even when one room is your office.
- Form 4562, form 4562, carried to schedule c line 13
- The building and the equipment themselves are capital costs recovered on Form 4562; only the premium is a current expense.
Examples that belong on line 15
- A $2,100 annual policy on a 1,800 square foot workshop you own
- $310 a year of coverage on camera gear carried to shoots
- Contents coverage on a leased office, $480 a year
- Flood coverage the lender requires on your commercial unit
What does not belong here
- Insurance on a rental house, which goes on Schedule E
- Your homeowner's premium with a home office, which runs through the home office calculation
- The cost of the building itself, which is depreciated
The limit that applies
A multi-year premium is deducted over the period the coverage runs, not in full in the year paid.
What to keep
Keep the policy, the premium invoices, and a schedule of the insured property. An equipment list tied to your depreciation schedule ties the two together.
Other expenses on line 15
| Expense | Line |
|---|---|
| a business owner's policy | Schedule C, Line 15 |
| a surety or performance bond premium | Schedule C, Line 15 |
| business interruption insurance | Schedule C, Line 15 |
| cyber liability insurance | Schedule C, Line 15 |
| general liability insurance | Schedule C, Line 15 |
| professional liability insurance | Schedule C, Line 15 |
| workers' compensation insurance | Schedule C, Line 15 |
Related lookups
- Do rental property expenses go on Schedule C?
- Can I deduct homeowners insurance for an office?
- Where does a website build go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so commercial property insurance lands on Line 15 without you sorting it.
Start for free