over on the SIA 360 board someone claimed physical security gear has to be depreciated over 39 years. Is that how you see it? Are you really supposed to be using that Digital PDP-11 you bought back in 1979 with your access control system today?
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Depreciation Time For Security Gear?
UI
Undisclosed Integrator #1
Dec 21, 2017I think 5-7 years.
UM
Undisclosed Manufacturer #2
Dec 21, 2017On the brighter side (this is meant to be humorous and ever so slightly informative) you might want to keep the PDP if you're still running that old NCS Level 4 system. You could program it to do almost anything, sans outside product integrations unless you pulled streams from the printer's parallel port.
I'll leave it you you to (Rodney) to comment on cyber worthiness.
Brian Rhodes
Dec 21, 2017Holy cow! I think 7 years was the most common duration I heard customers using, and even then I thought that was too long!
U
Undisclosed
Dec 21, 2017thank you all for confirming my (non-accountant) understanding it's around 7 years.
Here's the link (hopefully no login required) with the 39 years reference.
https://www.securityindustry.org/2017/12/11/action-alert-speak-favor-tax-reform/
(In 1979 I would have been trolling for wide-open dial-up modems at universities and ignoring the PDP-11's.)
JH
John Honovich
Dec 21, 2017Relevant quote from Rodney's SIA link:
Current IRS regulations require customers to “capitalize” the cost of these systems over the 39-year depreciation life for buildings, despite the need for updates on a much more frequent basis.
By contrast, this IRS doc says security equipment, falling under IT, are 7 years:
And this IRS doc for casinos says 39 years for things like ceilings and doors, but only 5 - 7 years for surveillance equipment:
SIA might be wrong about the 39 year issue, but it seems what they are really pushing for is to let businesses deduct the cost in full immediately:
Under the Senate provision, small- and medium-sized business would be able to deduct the cost of fire and security systems in the year incurred.
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