Yes, you can deduct the cost of auto insurance on Schedule C if you use your personal vehicle for business purposes. The deduction is allowed as a business expense. However, there are certain conditions that need to be met in order to qualify for this deduction.
Firstly, the vehicle must be used exclusively for business purposes. If you use the vehicle for both personal and business use, you can only deduct the portion of the insurance premium that relates to the business use of the vehicle.
Secondly, you need to keep detailed records of your business mileage and the expenses related to your vehicle, including the auto insurance premium. This documentation will be necessary to support your deduction in case of an audit.
It's important to note that if you are using the standard mileage rate to calculate your vehicle expenses, the auto insurance premium is already included in the rate. In this case, you cannot separately deduct the insurance premium.
For more specific information and guidance on deducting auto insurance on Schedule C, it is recommended to consult with a tax professional or refer to the IRS guidelines.