Which of the following is a deductible expense for self-employed individuals?

Health insurance premiums are considered a deductible expense for self-employed individuals. This deduction is particularly beneficial as it allows self-employed individuals to reduce their taxable income. When self-employed individuals pay for their own health insurance, they can deduct the premiums paid for themselves, their spouse, and their dependents, provided certain conditions are met. This deduction is an "above-the-line" deduction, meaning it can be claimed even if the individual does not itemize deductions on their tax return.

The other options listed do not qualify as deductible expenses for self-employed individuals. Personal living expenses are generally non-deductible as they do not directly relate to business operations. Luxury vehicle expenses are subject to strict limitations and are often partially deductible only if the vehicle is used for business purposes and not for personal use. Similarly, entertainment expenses, while they may be partially deductible in certain situations, have been significantly limited under tax reforms and are not commonly acceptable as deductibles for self-employed individuals.