Ask The taxgirl: Alarm Systems
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.
(Note: The TCJA eliminated the home office deduction for employees for 2018-2025.)
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
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please help !
where on schedule E do I take the cost of the alarm services on a rental property