T776 Rental Expenses

Not quite clear on this one.
Would Life & Disability Insurance on mortgage for rental property be eligible as business expense if coverage was not mandatory to secure the loan?

I would think not.

For that reason alone, it can’t be deducted as a business expense. There are more exclusions and conditions. It’s basically impossible to structure an insurance policy that would satisfy the regulations. However, insurance agents will always tell you otherwise.

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