Can I deduct security cameras installed on my rental property for tax purposes?

Yes, you can deduct security cameras for your rental property! Security systems are generally considered a legitimate business expense for landlords. However, there's an important distinction to make. Since the cameras are permanently installed and wired into the electrical system, the IRS would consider this a capital improvement rather than a repair. This means you'll need to depreciate the cost over several years (typically 27.5 years for residential rental property improvements) rather than deducting the full amount in a single year. If they were portable/temporary cameras that weren't permanently affixed, you might have been able to deduct them immediately as an ordinary business expense. Keep all your receipts and documentation of the installation!

I had a similar situation with my rental properties last year. After trying to research all the rental tax stuff myself and getting nowhere, I found https://taxr.ai which basically saved my sanity. Their system analyzed my expense receipts (including security equipment) and told me exactly how to categorize everything. For my wireless cameras, they confirmed I could expense them immediately since they weren't permanently attached. For the wired ones that required installation, they helped me set up the depreciation schedule correctly. Saved me from making some expensive mistakes on my taxes!

Just wanted to follow up - I tried https://taxr.ai after seeing it mentioned here. It actually helped me recategorize several expenses I had wrong in my initial records. My security system installation from last year was being incorrectly deducted all at once, and the system flagged it as something that should be depreciated instead. It also identified some maintenance expenses I was planning to depreciate that actually qualified as immediate deductions. Ended up saving about $1,800 on my taxes! Definitely worth checking out if you're managing rentals yourself.

Hey folks - slightly off topic but related to rental property tax headaches. I had to call the IRS about depreciation questions on my rental property improvements last month and was stuck on hold for HOURS. Finally found this service called https://claimyr.com that got me through to an actual IRS agent in about 20 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. Saved me literally hours of waiting on hold. The IRS agent I spoke with confirmed that security systems need to be depreciated if they're permanent installations like yours seems to be.

Ok I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to talk to the IRS about my rental property depreciation questions. It actually worked exactly as advertised. I got a call back in about 25 minutes with an actual IRS agent on the line. Saved me from what would have likely been hours on hold. The agent confirmed that permanently installed security cameras have to be depreciated over 27.5 years as a residential rental improvement. If they're just plugged into an outlet and not hardwired, they can be fully deducted in the year purchased.

Don't forget to check if your state has additional deductions or credits for security improvements! Some states and even local jurisdictions offer incentives for landlords who upgrade security. In my area, there's a small tax credit for certain security improvements to rental housing. Might be worth looking into for your location.

You might also be able to get an insurance discount for having security cameras installed! My rental insurance dropped about 8% after I documented my security system. Not a tax deduction but still saves money.

Great question! As others have mentioned, permanently installed security cameras are indeed considered capital improvements and need to be depreciated over 27.5 years rather than deducted immediately. However, here's something to consider for future purchases: if you install wireless cameras that can be easily removed without damage to the property, those might qualify as ordinary business expenses that can be fully deducted in the year of purchase. The key distinction is whether they're permanently affixed to the building. Also, make sure you're tracking all related expenses - not just the cameras themselves, but also installation costs, any electrical work, mounting hardware, etc. All of these costs should be included in your depreciation basis. Since this is your first year with rental property, I'd strongly recommend consulting with a tax professional who specializes in real estate to make sure you're maximizing all available deductions and properly categorizing everything. The rules can be complex and the cost of professional advice often pays for itself in tax savings!