Building maintenance is not cheap but is always necessary. Owning a building is a huge investment and you are responsible for maintaining the integrity of the building at all times. Regular service, maintenance, and improvements are needed to do this and the costs of these add up. Taxpayers can breathe a sigh of relief now, as changes to the Tax Cuts and Jobs Act expanded its definition of qualifying property, giving individuals a chance to expense more of these maintenance costs.

Tax Cuts on Re-Roofing Projects

The Tax Cuts and Jobs Act of 2017 recently expanded the definition of qualified property that will be eligible for full expensing. Under section 179 of the tax code, qualified properties can include improvements to non-residential roofing projects as eligible for tax cuts. The information below can help you to determine if your company is eligible for this preferential tax treatment when you make improvements or upgrades to your nonresidential roofing.

What is Section 179?

This section of the tax code allows taxpayers to expense the costs of qualifying property immediately rather than having to recover it over several years of depreciation. There has been a significant increase in expensing limits with the maximum amount now being $1 million. Additionally, there is a phase-out threshold of $2.5 million. These limits are effective only for qualifying property that is placed into service during taxable years after December 31, 2017.

Roofing is Now Qualifying Property

Improvements to roofing of non-residential property is now included in the definition of qualifying property along with heating, ventilation, fire protection, alarm systems, and air conditioning. With this expansion of the definition, taxpayers can now include roofing upgrades and improvements and can choose to fully expense the costs of the work done. This can include full re-roofing projects. All costs for these qualifying projects can now be expensed in the year of purchase by any taxpaying individual that is eligible to deduct expenses under Section 179 of the tax code. If you have any questions you should contact your tax professional. Find out if your company is eligible to start enjoying this more favorable tax treatment, and start saving money today.

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