Deductions can be very helpful for those looking for ways to decrease their yearly tax burden. When it comes to homeowners insurance, there are some situations where you may be able to deduct your policy. To this end, the Barron Mutual Insurance Company in Wisconsin can assist homeowners with complex insurance questions, including those related to tax issues.

When Homeowners Insurance Is Not Deductible

The question of whether your homeowners insurance policy is considered tax deductible is largely an issue of how the property is used. In cases where a property is intended solely as a personal residence, your insurance is not considered tax deductible. Private mortgage insurance can be deducted, but these policies are quite different from standard policies.

Exceptions

In some cases, homeowners insurance may be able to be deducted. For instance, renting a portion of your home to a tenant is considered a business expense, which means that the part of your home used as a rental can be written off on your taxes. The same can be said for home businesses, which entails a partial deduction of your policy.

Issues related to theft or loss can also be deducted in some cases. It can be written off if you need to pay out of pocket for expenses that go beyond your current policy limitations. However, deductions are often complex, and ensuring you remain compliant with all applicable tax laws is imperative when making a deduction. Accordingly, working with a knowledgeable insurance professional is crucial to making certain your deduction is valid.

Providing exemplary service since 1891, Barron Mutual Insurance Company has established a relationship for going above and beyond when it comes to meeting clients’ needs. Contact an insurance agent in Barron today by calling (715) 537-5141. You can also visit them online for a complete listing of available products, including homeowners insurance.