A very important (though often overlooked) benefit of a security system is that it can give you substantial savings on your tax liability and insurance premiums. In fact, it's not unusual for savings in these areas to largely offset the cost of installation and monitoring.

Reduce Your Tax Liability

A home security system is usually considered a "capital improvement" on a home. If you make such an improvement you can add the cost to your home's adjusted cost basis at the time of sale. This reduces your capital gain and, therefore, your capital gains tax when you sell your home. Profesionally installed security systems are also very popular with home buyers, which will make your home easier to sell.

At the same time, monitoring fees are normally eligible for treatment as a deductible business expense. This is also true if you are running a business out of your home, for that portion of the system that is protecting the "business area." (See your accountant for advice concerning your particular situation.)

Reduce Your Insurance Premiums

Insurance companies know that monitored security systems help prevent losses. In fact, a home with a security system is far less likely to be burglarized than a home without a system. So most insurance carriers offer discounts on insurance premiums when you install or upgrade a security system.

According to the Security Industry Association, insurance companies typically offer discounts of up to 20 percent when a security system with remote monitoring is installed. Discounts are higher when the homeowner has a central-station monitored system. (SIA Research Update, 2001)

To find out how you can put these kinds of cost savings to work for you, while protecting your home or business at the same time, just contact us here at Security Tech.