Alarm Deductions

[dave4him]

Can we deduct bills for our security system?
Is it right we can also deduct our car payment and tax, or just the insurance?
What about our cell phones?

[TomCopeland]

Deductions

Yes, you can deduct the time-space % of security systems.
When deducting expenses for the car you must choose between the standard mileage rate ($.555 per mile for 2012) + the business portion of car loan interest and parking, or the actual expenses method (multiply the business portion of the car by all expenses). Don't claim a portion of car loan payments; instead claim the business portion of the interest and then depreciate the car when using the actual expenses method.

You can deduct the business portion of a cell phone as long as it's not the first line into the home. The first line is never deductible.

[dave4him]

So i cant count my home phone line even though its sole purpose is for the DHS machine?

[TomCopeland]

alarm

The first phone line into your home is always not deductible, no matter what.

[dave4him]

So i cannot deduct my home line, but i can my cell?

[TomCopeland]

cell phone

If you have one phone line in your home, you can't deduct it, no matter if it's a land line or cell phone.

If you have more than one phone line into your home, you can't deduct the first one and you can deduct the business portion of the second phone line. Again, it doesn't matter which one is a land line or cell phone.

So, if you have a land line (your DHS machine) and a cell phone line, you could call your cell phone your first line (not deductible) and claim the second line as a deduction (100% business if it's only used by your business).