Can I deduct insurance on leased equipment paid to leasing company?

I am required to have insurance on the equipment I am leasing and am paying the insurance fees directly to the leasing company.

Deductions & credits

Yes, you are allowed to deduct your insurance paid on leased equipment as it is an ordinary and necessary business expense.

The IRS defines expense ordinary and necessary expenses this way:

  • An expense is ordinary if it is common and accepted in your industry

  • An expense is necessary if it is helpful and appropriate for your business