Tax Deductible Security Guard Services

When running a business, finding things that help your business that are also tax-deductible is a win-win. As we are in tax season, learning that enhanced security with private security guards gives business owners a sigh of relief. In many cases, hiring security officers is tax-deductible, up to 100%, and this can be confirmed with a certified tax accountant. As with any tax deduction, some guidelines qualify expenses, and this is no different. However, if you can deduct security guard services for your business, whether industrial, corporate, or retail, it is a no-brainer to look more into whether this service would be tax-deductible for the business. Working with your tax professional can help clarify your unique situation.

When Security Is Necessary

One of the tax deduction rules for businesses is that expenses must be necessary and ordinary, and security guard services certainly fall into that category. Security patrols protect property, employees, and customers, and prevent theft, vandalism, and other attacks on assets. Hiring security guards may also reduce insurance costs by increasing loss prevention and minimizing liability through their presence at your business. Construction sites and warehouses are among the most common businesses to hire security guards, as they consider protecting these locations a legitimate operating expense, justifiable at tax time. If private security guards are a tax-deductible expense for your business, there is no reason not to hire live patrols.

Other industries that rely on security guards to help protect their businesses and write it off include commercial properties, event organizations, retail stores, and shopping malls. When it comes to deterring theft and other crimes and protecting staff, this expense can be directly linked to revenue protection. Lobby security guards or live patrols keep tools, buildings, and materials secure. In commercial properties, security monitors the premises and perimeter and are equipped to act and respond. Events that would be safer for the crowd and improve access control can often be considered part of the event's operating expenses. Event-planning businesses and popular venues may consider this option for their clients.

Security Need v Security Want

One area where it will be difficult to justify writing off private security guards is for personal and private events. Protection over a residence doesn’t tie to income-generating activity, which is likely to make this expense exempt from tax deductions. Working with a reputable, licensed event company may include private security guards and be rolled into the event's overall fees. However, for private events, especially those in public spaces like beach weddings or Live Action Role-Playing (LARP) events in the park, hiring private security guards can make the experience much safer, more secure, and more enjoyable. When hosting a private event, being responsible for the guests, their belongings, and keeping unwanted visitors from disrupting the ceremonies can offer just the peace of mind one needs to pull off a memorable event.

Common Questions About Writing Off Security Services

Small business owners may or may not know about the opportunity to secure their business and write it off during tax season. Small businesses that treat security as a primary and necessary expense will likely be able to work with their accountant to categorize security services as costs. Sole proprietors may be able to provide business security, not personal protection. Remember that the IRS wants to make sure that if you are using it for your business, you can write it off, but if it crosses that line into personal use, that can be an elimination factor. Rental properties may be able to qualify security guards as a business expense because they are part of the management costs. Whether a security guard is armed, unarmed, standing in the lobby, at the security gate, or monitoring the crowd, the value they bring is priceless. On the other hand, if you can include it in your business expenses, why wouldn’t you?

Surveillance equipment is another potential expense, but because it is equipment, it will depreciate over time. Tax professionals and CPAs are well-versed in both business expenses and depreciation.

If You Can Expense It, Don’t Wait

Once business owners confirm with their tax professional that private security guards are deductible, they can take action immediately and work with a trustworthy, reliable security company like Off Duty Officers. Since 1993, we have been helping clients across all industries and handling commercial and private security needs with professionalism, grounded in the expertise and training of our security team. Contact us today for a hassle-free quote and let us protect your business, assets, people, and future. Call to speak with our live security coordinator at 844-262-6650.