Spending time, effort and money when securing your business is an investment you can't argue against. Whether it is a home based or commercial location, the benefits include added security for the people who work and/or live in the space and the possessions contained within. Aside from the added protection, installing a security system also has fiscal benefits! For home based businesses, this includes reduced home insurance costs and a break come income tax time.
Installing a security system in your home for personal reasons may seem like a justifiable tax deduction. In fact however, the Internal Revenue Service specifically deems home security systems for protection of personal property as not deductible. Publication 529 from the Internal Revenue Service, page 13 entitled "Miscellaneous Deductions", clearly lists 'home security system' as a non-deductible.
The idea that home security units are tax deductible has likely been assumed since security systems for home based businesses are indeed tax deductible. The Internal Revenue Service deems these systems an 'ordinary and necessary' expense for doing business.
There are many factors you should consider before running out and installing a home security unit in your home if it also houses your business. There are several conditions that must be met when trying to have your home based business' security system counted as a tax deductible benefit. For example, you may only claim the cost of securing the part of your home that houses the business. You may not claim the rest of the security systems costs under the business name.
If you have an office in your home that you use for business, but also use the computer in that room to follow your Twitter or Facebook news, then you will have difficulty justifying the deduction come tax time. On the flip side of the coin however, if you have a separate entrance for your customers and have dedicated an entire rooms or series of rooms off of that entrance for your business, you can likely deduct the cost of a security system.
If you have any doubts ahead of time, be sure to consult a tax professional. They can most certainly steer you in the right direction. Another person to consider speaking to when considering adding protection for a home based business would be your insurance agent. They will be able to guide you through the necessary steps and advise you on any steps that need further attention to be sure that you qualify for a lower rate on your home insurance.
Find all your home, business or industrial automation, security, alarm and monitor needs online at Absolute Automation Inc.!
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Renee Laurin
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