You May be Able to Expense Your Building’s New Roof

The end of 2020 is nearing and for many of us, it’s a welcome event. For local businesses, the pandemic made this year one of the most financially challenging. With that in mind, we wanted to provide some positive news to owners of non-residential buildings.

Your new commercial roof could be a tax benefit!

Changes to Section 179 under the Tax Cuts and Jobs Act increased the amount of money you can deduct as a business expense (up to $1 million) rather than the property expense being capitalized and depreciated.

So, building enhancements such as industrial roofing improvements may qualify as an eligible expense under Section 179 Tax Deduction.Taxpayers can now include the following improvements made to nonresidential property:

tax break money inside a christmas stocking
  • Roofs, HVAC, fire protection systems, alarm systems, and security systems.
  • Any improvement to a building’s interior (unless attributable to enlarging the building, elevators or escalators, internal structural framework)

These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017. You can get more details on this IRS website regarding what businesses can immediately expense this year under the new rules of the Tax Cuts and Jobs Act.

The Roofing Contractors Association (NRCA) applauded the new tax law’s expensing rules for roofs, and we do too!

If your building or warehouse needs a new roof, this one-time tax deduction can make it more affordable.

Additionally, you may be able to deduct your commercial mortgage interest, tax benefits from maintenance, and benefit from opportunity zones. We are commercial roof professionals, however, and not tax experts! We suggest you consult with your accountant or business attorney to learn the options available to you under these new rules.

Smucker Contracting specializes in industrial roof restorations and replacements for all types of commercial roofs. Our crew members are certified and trained technicians who are proficient with Conklin Roofing System products, which offer consistently superior protection at an affordable price.

Our roof restoration services can save you thousands compared to complete roof tear-off and installation.

Request a free roof inspection to learn how we can help restore your building’s roof and take advantage of the tax benefits available to you.