A security monitoring service belongs on Line 25, utilities.
Why line 25
A monitoring contract for business premises is a recurring service charge reported with the utilities on line 25, alongside the power and the water that keep the same premises running. The equipment is separate: cameras, panels and sensors you bought are assets, and if they are installed into the building they can be a capital improvement rather than a quick write-off. At home the usual split applies, because a household alarm protects the whole house, so only the business share is in play and it normally travels through the home office calculation.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a security monitoring service lands on Line 25 without you sorting it.
Start for freeWhat a security monitoring service is confused with
- Line 13, depreciation and section 179 expense deduction
- The monitoring subscription is line 25; the cameras, control panel and sensors are assets, expensed under the de minimis safe harbor or depreciated on line 13.
- Line 30, line 30, business use of your home
- Monitoring for rented business premises is line 25 in full; a household alarm in a home with an office is an indirect home expense inside the line 30 calculation.
- Line 15, insurance
- A monitoring fee is a service charge on line 25; the premises insurance premium that the alarm may reduce is insurance on line 15.
Examples that belong on line 25
- $52 a month of alarm monitoring at a rented shop
- $38 a month of cloud camera monitoring at a workshop
- $420 a year of monitoring at a storage yard
- $29 a month of monitoring at a studio, plus $900 of cameras on line 13
- $65 a month of monitored fire and intrusion service at a cafe
What does not belong here
- The camera and panel hardware, which are assets.
- A whole-home alarm contract claimed in full.
- Installation that is a building improvement, which is capitalised.
- The insurance premium, which is line 15.
What to keep
Keep the monitoring contract and the monthly or annual invoices for the business address, and keep the equipment invoices separate so the asset side is not folded into a service deduction.
Other expenses on line 25
| Expense | Line |
|---|---|
| a dedicated second business landline | Schedule C, Line 25 |
| a hotspot or mobile data plan | Schedule C, Line 25 |
| a mixed-use phone bill | Schedule C, Line 25 |
| a mobile phone bill | Schedule C, Line 25 |
| a shared internet connection | Schedule C, Line 25 |
| a VoIP service | Schedule C, Line 25 |
| electricity for a rented office or studio | Schedule C, Line 25 |
| gas and heating for business premises | Schedule C, Line 25 |
| internet service | Schedule C, Line 25 |
| utilities in a part-shop part-home building | Schedule C, Line 25 |
| water, sewer and trash for business premises | Schedule C, Line 25 |
Related lookups
- Where does capex go on Schedule C?
- Can I deduct homeowners insurance for an office?
- Where does general liability insurance go?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a security monitoring service lands on Line 25 without you sorting it.
Start for free