Doing Taxes? Where and How Your Security System Might Be Tax-Deductible!

Tax season isn’t exactly anyone’s favorite time of year. But while you’re reviewing expenses and gathering receipts, you may discover something surprising: parts of your security system could qualify as a tax deduction.

Many business owners — and even some homeowners — don’t realize that certain security upgrades may be deductible depending on how the property is used. While every situation is different, here’s a practical look at where and how your security system might fit into your tax strategy.

Before we go further, it’s important to note that this article is for general informational purposes only. Always consult your CPA or tax professional to confirm eligibility.

Security Systems for Businesses

If you own a business, security systems are often considered a legitimate business expense. That can include:

• Alarm systems

• Surveillance cameras

• Access control systems

• Monitoring services

• Installation costs

If your security equipment is installed at your commercial location, it may qualify as a business expense under ordinary and necessary business costs. In many cases, businesses can deduct either the full cost in the year installed or depreciate the equipment over time.

For retail stores, restaurants, offices, warehouses, and other commercial properties, security upgrades are typically viewed as protecting business assets — inventory, equipment, employees, and customer safety.

That makes them far more than just a protective measure. They may also be a financial strategy.

Home Office Security Systems

If you operate a business from home and qualify for the home office deduction, things become more nuanced.

A portion of your security system costs may be deductible based on the percentage of your home that is used exclusively for business. For example, if you use 20 percent of your home as a dedicated office, that same percentage of qualifying security expenses could potentially apply.

This might include:

• Monitoring fees

• Alarm systems

• Cameras that protect business property

• Smart locks used for client access

Again, this depends on how your home office is structured and how exclusively it is used for business purposes. Your tax professional can help calculate this accurately.

Rental and Investment Properties

If you own rental properties or short-term vacation rentals, security systems often qualify as property improvements or business expenses.

Landlords frequently install:

• Exterior cameras

• Smart locks

• Alarm systems

• Lighting automation

These upgrades may be deductible as operating expenses or depreciated over time as improvements to the property.

For Myrtle Beach and Grand Strand property owners managing vacation rentals, smart security systems also help protect against liability claims and damage — making them both a protective and financial asset.

Security System Monitoring Fees

Monthly monitoring fees are another area worth reviewing during tax season.

For businesses and rental properties, recurring monitoring costs are often considered ongoing operational expenses. These may be deductible in the same year they are paid.

For homeowners without business use, monitoring fees typically are not deductible — but if any part of your home qualifies as a business space, a percentage could potentially apply.

Section 179 and Equipment Deductions

Many business owners benefit from Section 179 deductions, which allow certain equipment purchases to be deducted in the year they are installed rather than depreciated over several years.

In some cases, security systems and related hardware may qualify. This can provide significant tax advantages for businesses investing in upgrades.

However, eligibility rules change, and limits vary year to year — another reason to consult your CPA.

Why This Matters Beyond Taxes

While the possibility of deductions is helpful, the real value of a security system isn’t just financial.

Security protects your property, your employees, your customers, and your peace of mind. Cameras can make or break a liability claim. Alarm systems reduce theft. Access control improves operational control.

The potential tax advantage is simply an added benefit.

If you were already considering an upgrade, tax season is a good reminder to evaluate your current setup and talk with your accountant about how improvements might fit into your overall business planning.

A Quick Reminder: We are Not Tax Professionals.

Every tax situation is unique. Deductibility depends on how the property is used, how the system is installed, and current IRS regulations. Always confirm with a qualified tax professional before making financial decisions based on deductions.

Ready to Review Your System?

If you’re reviewing expenses and realizing it might be time for a security upgrade, Strand Security can help.

We serve businesses, homeowners, and property owners across Myrtle Beach, Horry County, and Georgetown County with modern security and smart solutions designed to protect what matters most.

And if those improvements happen to support your tax strategy too? Even better.