Under President Trump’s new tax plan, small- and medium-sized business owners can write off 100 percent of their fire protection, alarm and security system purchases for existing commercial buildings.
What does this mean?
Previously, security and fire protection systems were excluded from deductions in Section 179 of the IRS tax code, forcing businesses to depreciate the cost instead. Only repairs could be deducted in the same tax year.
But the Tax Cuts and Jobs Act, signed in into law in late December, expands eligibility for deductions to fire protection, alarm, and security systems, along with other equipment, placed in service in 2018, according to articles published by the Security Industry Association, Accounting Today and Forbes.
The law also increases the amount of qualified purchases a business can expense to $1 million, up from $500,000. View a fact sheet with more details from the Security Industry Association.
Experts predict the change will lower the overall cost of installing a security system by 25 to 30 percent. Please consult your tax advisor for your specific tax savings.
Let us design and install a solution for your business today! Read more.
To ensure compliance with IRS requirements imposed by the United States Treasury, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of 1) avoiding tax-related penalties or 2) promoting, marketing or recommending to another party any tax-related matters addressed in this communication.