Commercial Roofing Tax Benefits

Are you dreading your commercial roof maintenance because of the hefty cost? We have tax news that will alleviate your financial concerns.

There have been some exciting changes to the Internal Revenue cost, section 179! You can write-off the entire purchase of your repairs and upgrades now! The new deduction change started in 2018 and will continue for this tax year of 2019. Deductions can be applied to new and used equipment, vehicles, furniture, software, property additions, and best of all, roofing repairs, upgrades, and roof replacement can be expensed the year of purchase. 

As a business owner, you can deduct the full cost of a roof replacement in the year it was installed, instead of depreciating over 39 years with the 179 tax deduction. The deduction limit is now $1,000,000 instead of $500,000 from 2017. Expenses up to $1M with a phase-out threshold to $2.5M. One thing to note, If your repair cost exceeds $2.5, then you are not qualified to the full $1Million deduction. 

As of January 1st, commercial buildings that qualify for section 179 includes ‘improvement to nonresidential real property after the property that was first placed in service including roofs, heating, ventilation, and air-conditioning property, fire protection and alarm systems: and security systems. And qualifying small and midsize businesses may now elect to fully expense the price of any improvements to commercial roofs, including full re-roofs of the existing building of the year of purchase. But only repair your roof if it’s necessary. Maintaining your roof maintenance will help with the lifespan.

Buildings that Qualify for the 179 Tax Deduction

  • Office
  • Retail 
  • Industrial/Warehouse
  • Apartment Buildings

Most repairs can be written off, but there may be a few limits and timing issues that will offset the deductions. Most repairs and maintenance are fully deductible, and cost that adds value is capitalized and rendered through depreciation. Nonetheless, many safe harbor rules allow for immediate deductions. In the end, replacing your commercial roof is a hefty expense, and it could cause a financial nightmare if you did not budget for that expense.

If your building needs a new roof or repairs, then the new tax law will make it more affordable for you. It’s best to take a look at all repairs that you make over the year and keep track of them. Keep in mind; you might not be able to deduct all roofing expenses depending on the cost. Be sure to discuss your roofing improvements with your tax professional for advice to discuss further on what qualifies for an immediate write-off.

It’s your responsibility as a business owner to maintain your commercial roof for the safety of others and to prevent a financial headache for your business. Studies have shown that keeping up on your roof maintenance will last up to 60% longer and save you money in the long run. 

Having a plan in place and staying organized with your repairs and taxes will help you in the long run. Nothing stays new and perfect forever, especially your commercial roof. 

What causes wear and tear on your roof 

  1. Exposure to the sun
  2. Biological Growth
  3. Neglecting the Issue 
  4. Putting off maintenance, not having a plan in place
  5. Changes to how you use the building

Need help with maintaining your roof maintenance plan? We are here to help you find the best solutions and answer your questions and concerns. Contact us today!

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