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.
What qualifies?
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