I own a home and property along with an Equine business, currently the company has been paying for the homeowners insurance and property taxes due to using the home for business needs. I am inquiring on getting a farm liability policy in order to keep myself from loss and having others place their horses on my property when needed. Should the insurance and taxes be paid thru the company or should I be paying thru my personal account? What name should the insurance be in, personal or company?"
Answer
From the facts described in your inquiry, the insurance should be obtained in
your business name if your reason for obtaining the insurance is directly related
to your equine business. Likewise, if the insurance is directly related to your
business, it is deductible for income tax purposes. Depending on the division
of personal and business-related real property, you may be advised by your
tax preparer to apportion the insurance costs based on that division between
business and personal property. If the insurance expense is deductible for tax
purposes, you should pay it with your business account.
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