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Security cameras

TL;DR

Security cameras can generally be deducted as a business expense if they are used to protect a business property, but personal use is not deductible.

Detailed Answer

Security cameras are deductible as a business expense under IRC §162 if they are used to protect business property or assets. This includes cameras installed in an office, store, or other business premises. However, if the cameras are installed in a home that is not used for business purposes, the expense is not deductible. If the home is partially used for business, such as a home office, only the portion of the expense related to the business area is deductible. It's important to allocate the cost between personal and business use if applicable. For example, if a security camera system costs $1,000 and is used 50% for business, only $500 can be deducted.

Where to Put It on the Tax Form

Schedule C, Line 27a for sole proprietors and single-member LLCs. For partnerships and multi-member LLCs, report on Form 1065, Line 20. For corporations, report on Form 1120, Line 26.

Real World Example

A freelance graphic designer installs a security camera system costing $800 in their home office to protect their equipment. Since the home office is 25% of the total home area, they can deduct $200 (25% of $800) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion, determine the percentage of the home used for business (e.g., home office square footage divided by total home square footage) and apply this percentage to the total cost of the security system.

Audit Risk & Documentation Tips

The audit risk is moderate, especially if the cameras are in a home setting. Keep detailed records, including receipts, installation contracts, and a log of business use. Photographic evidence of the camera setup and its location in relation to the business area can also be helpful.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162.

Relevant Industries

Small Business OwnersRetailersConsultantsFreelancers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on November 21, 2025

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