If you own commercial property in Wappingers Falls, NY or the surrounding areas, then you’ll know how expensive maintaining, repairing or installing a new roof can be. Fortunately, those costs can be considered overhead, which means you may be eligible for certain tax deductions. The following are some of the tax tips for commercial roofs you should keep in mind in 2019.
Can I deduct the betterment, restoration, or adaptation of my roof?
You’ll want to write off any work which adds value to your building (betterment), restores your building back to its original condition (restoration) or customizes it for a different use (adaptation). Previously, you would have to depreciate these items over a certain number of years following the work you did. This includes if you:
- Replace your old BUR roof – If you install a new single-ply membrane, then you’re upgrading your roof and adding value.
- Restore the condition – If your roof is experienced wear and tear and you have a commercial roofer restore it.
- You replace your roof – If you replace your existing roof with a useable patio, you’ve customized it for additional use.
However, under Section 179 of the recently passed Tax Cuts and Jobs Act, you can immediately expense the cost of this type of roof work in the year it was performed if you qualify. Just keep in mind that there are limits on these costs, which include the following:
- The maximum amount that you can expense is $1 million
- The phase-out threshold is now $2.5 million
These limits are effective if you’ve performed betterment, restoration or adaptation work on your roof after December 31, 2017. Amounts will be indexed for inflation in 2019.
Can I deduct maintenance costs?
Any routine maintenance, from minor repairs to annual inspections, that you have done on your roof can be fully deducted in the year that it was done. The IRS defines routine commercial roof maintenance as the following:
- Repairs resulting from regular wear and tear
- Repairs resulting from wear and tear caused by your trade or business
- Repairs needed to keep your commercial property in its normal condition and operating efficiently
- Repairs required more than once during a 10-year period or during its class life.
Keep these general tax tips in mind, but make sure you consult with a tax professional in Wappingers Falls to make sure you qualify. For commercial roof services in Wappingers Falls, contact us at Vanguard Roofing today.
Post Updated 3/2019