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Ask the taxgirl: Alarm Systems

June 29, 2009 · 2 comments

Taxpayer asks:

After a string of robberies in my neighborhood, I decided to install an alarm system. I paid a flat fee for installation plus I pay an amount each month. Is any of this deductible on my taxes?

Taxgirl says:

If the property that you alarmed was your home, the answer is no. There is no tax deduction for installing an alarm system at your home. On the plus side, however, it’s possible that your insurance rates will go down!

If the property that you alarmed was a rental or commercial property, the answer is yes. Both the installation and the monthly fees are deductible as the cost of doing business on those types of property.

There is one more consideration: what if your home is also your place of business? If you take the home office deduction, then you may claim the pro rata portion of the alarm system on your taxes, just as you do with other home office expenses. However, the portion attributable to the non-office portion of your home is still not deductible.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

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{ 2 comments… read them below or add one }

1 sheila blanchett December 8, 2011 at 8:47 am

I forgot to file taxes on a new car that I bought what would be my legal rights in re-filing now to see if i could collect on the back taxes ? I live in Tn, we have no state taxes this happened a few yrs ago now I find out I could have collected is it too late ?

please help !

2 Rhonda February 6, 2013 at 10:30 am

where on schedule E do I take the cost of the alarm services on a rental property

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