Beginning in 2018, a new tax law allows many businesses to write off the full cost of new security, fire protection, and alarm systems as an expense for the tax year they were placed in service, eliminating the capitalization requirement. These incentives were part of the broader effort in the new law to produce long-term economic growth by encouraging business to make capital investments.
Generally, the costs of commercial-use security, fire protection, and alarm systems are capitalized and depreciated over a recovery period of five, seven, 15 or 39 years, dependent on factors such as the type of system purchased, the integration within a building structure, whether the installation involves owned or leased property, and the relationship to business activity.
Fire protection and alarm systems, including sensing devices, computer controls, sprinkler heads, sprinkler mains, associated piping or plumbing, pumps, visual and audible alarms, alarm control panels, heat and smoke detection devices, fire escapes, fire doors, emergency exit lighting and signage, and fire-fighting equipment, such as extinguishers and hoses.
Security systems for the protection of the building and its occupants, including window and door locks, security cameras, recorders, monitors, motion detectors, security lighting, alarm systems, entry and access systems, related junction boxes, associated wiring, and conduit
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Disclaimer: The information on this website should not be used in any actual transaction without the advice and guidance of a professional Tax Adviser who is familiar with all the relevant facts. Although the information contained here is presented in good faith and believed to be correct, it is general in nature and is not intended as tax advice. Furthermore, the information contained herein may not be applicable to or suitable for the individuals’ specific circumstances or needs and may require consideration of other matters. Convergint Technologies assumes no obligation to inform any person of any changes in the tax law or other factors that could affect the information contained herein.