Is Home Security Tax Deductible for Your Tax Return?

Home security systems provide peace of mind, but they can also be a significant expense. Many homeowners wonder if these costs can be deducted on their tax returns. While home security expenses are generally considered personal and not deductible, there are specific situations where they may qualify for tax benefits.

Qualifying Circumstances

The IRS classifies home security expenses as personal, making them non-deductible in most cases. However, exceptions exist when security measures are directly tied to income-generating activities or legal requirements. If part of a home is used exclusively for business and meets IRS guidelines, security costs related to that space may be deductible. This applies to home-based businesses where security is necessary to protect business assets, client information, or inventory.

Security expenses may also qualify as medical deductions in rare cases. The IRS allows medical expense deductions for costs exceeding 7.5% of adjusted gross income (AGI) if they are necessary for treatment, diagnosis, or prevention of a medical condition. A home security system may qualify if a medical professional documents that it is essential for conditions such as severe anxiety or a disability requiring heightened safety measures. Proper documentation is required to substantiate this claim.

Home Office Requirements

To deduct home security expenses for a home office, the space must meet the IRS’s strict definition of exclusive and regular business use. The area must be used only for business purposes. A workspace that doubles as a personal area does not qualify.

The deductible portion of security costs depends on the percentage of the home designated for business use. If a home office occupies 15% of the total square footage, only 15% of the security expenses can be deducted. This prorated approach is similar to how utilities and insurance are calculated for business use. IRS Form 8829, “Expenses for Business Use of Your Home,” is used to report these deductions.

Security expenses must be directly related to protecting the business space. General security measures for the entire home, such as a front-door camera or a whole-house alarm system, may only be partially deductible. However, security features specifically installed for the home office—such as a separate alarm system or reinforced locks for a business storage area—may qualify for full deduction.

Rental Uses

Property owners renting out all or part of their homes may be able to deduct home security expenses as rental property deductions. The IRS allows deductions for expenses necessary for managing and securing a rental property. Security systems, cameras, and monitoring services installed specifically to protect a rental unit or tenants may qualify.

Deductibility depends on whether the security system is exclusively for the rental portion of the property. If a landlord installs a security system solely for a tenant-occupied unit in a duplex, the full cost may be deductible. If the system protects both a personal residence and a rental space, only the portion attributable to the rental area can be claimed. The allocation is usually based on square footage or another reasonable method of division, similar to shared expenses like utilities or maintenance costs.

Security expenses can also be deducted if they are part of the services provided to tenants. If a lease includes security features—such as gated entry, keycard access, or alarm systems—the costs of maintaining these features can be categorized as rental expenses. This applies to single-family homes, multi-unit buildings, and short-term rentals.

Eligible Expenses

Security expenses for business properties or income-generating activities must be directly related to protecting assets, personnel, or financial interests to qualify for tax deductions. Surveillance cameras, alarm systems, motion detectors, and access control systems installed to safeguard business premises can generally be deducted as ordinary and necessary business expenses. These costs may be classified as maintenance expenses if they are part of routine security measures or as capital expenditures if they significantly enhance property value or extend its useful life.

Businesses in high-risk industries or locations with elevated security concerns may deduct additional protective measures such as security guards, reinforced doors, or cybersecurity systems. The IRS allows deductions for security-related expenditures when they are justified as a reasonable business need.

Record-Keeping

Maintaining thorough documentation is necessary when claiming home security deductions. The IRS requires clear evidence that expenses are legitimate and directly related to a qualifying use. Without proper records, deductions may be disallowed. Taxpayers should retain invoices, receipts, contracts, and service agreements detailing the cost and scope of security installations or monitoring services. These documents should specify whether the system was purchased outright or is part of an ongoing subscription.

For those deducting security costs related to a home office or rental property, additional records are needed to substantiate the percentage of expenses allocated to business or rental use. Floor plans, utility bills, and lease agreements can help demonstrate how security measures are proportionally applied. If security expenses are deducted under medical necessity, a letter from a licensed physician outlining the health-related need for enhanced security should be kept on file. Taxpayers should store these records for at least three years.

Non-Deductible Instances

While certain circumstances allow for home security deductions, many situations do not meet IRS criteria. Security expenses incurred purely for personal peace of mind, even if they contribute to overall property protection, are not deductible. This includes alarm systems, surveillance cameras, and monitoring services installed solely for a primary residence without any business or rental connection. Even if a homeowner works remotely but does not have a dedicated home office that meets IRS standards, security costs remain a personal expense.

Security upgrades made to increase a home’s resale value or improve general safety, such as reinforced doors or gated entry systems, do not qualify. These are considered capital improvements rather than deductible expenses. If security costs are reimbursed by an employer or covered by homeowner’s insurance, they cannot be claimed as deductions. Attempting to deduct non-qualifying expenses can lead to IRS scrutiny, so taxpayers should carefully assess whether their security costs meet the necessary qualifications before including them on their returns.