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

[tedkauffmann]

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

[Marketstar]

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