I recently changed insurers (and insurance agent) for 2 policies. One of the policies is a "landlord" homeowners policy on a rental property; the other policy is a personal auto policy. The landlord policy is a Schedule E expense; the auto policy premium is obviously not deductible.
I just discovered today that a portion of the premium that I was quoted for the landlord policy is actually an "agency fee." According to the agent, "It is just a one time fee regardless of how many policies you have with us or if we re-shop you at a later date for any reason."
My current thinking is to pro-rate the fee based on the annual premiums (premia?) of the two policies. Does that sound like the correct tax treatment?