Can you write off your home security system?
Not usually, but deductions are sometimes available if you have a home business
. Remember that, according to the IRS
, part of your home must be used “exclusively and regularly for business as either your principal place of business or as the place where you meet or deal with clients or customers in the normal course of your business.”
When is your home business security system tax deductible?
You may be eligible for a tax deduction if your home doubles as a place of business, but it will depend on where you have the security system installed.
If, for example, you install a security system in an area of your home that’s used exclusively for business (maybe a salon or daycare or mechanic shop), you may get a larger deduction. On the other hand, if you work in a home office and have a security system that protects your whole home, you may get a deduction, but it will probably be smaller.
This IRS worksheet
can help you figure out exactly which deductions you can take.
What type of expense is a home security system?
- If you have a home business, your security system will be considered a direct or indirect expense, depending on where it’s installed.
- If you use the security system to protect your whole house, including the area where you work, your system is an indirect expense.
- If you install a separate security system (one that doesn’t cover your whole house) in an area of your home that is never used for anything other than business, the system would be a direct expense. If you’re building a home office, consider keeping it separate from other parts of your home and installing a separate security system if you want it to be tax deductible.
If you can't get a tax deduction on a home security system, are there other ways to save money?
Yes! Many insurance companies—including Allstate, USAA, and State Farm—offer discounts on homeowners insurance policies if you install safety equipment or a security system.