Are you a business owner or property manager that needs a new commercial roof? Whether you have put off the inevitable or just now learned that you have a need, now is the perfect time for that re-roofing project thanks to changes in the tax code.
The cost of replacing a commercial roof is considered a major capital expenditure for many businesses. Long-term budgeting can be complicated, and your company may not have put provisions in place to deal with such a cost. Fortunately, the new tax code allows your company to write off the entire cost of a re-roofing project on a single year’s taxes!
How the Old Tax Code Treated Roof Repair and Replacement
Before December 2017, the U.S. code required that business owners split their building repairs into two categories: expenses and capital expenditures. Expenses referred to repairs such as dealing with leaks and other roof patching. The old tax permitted business owners to write off these expenses on the current year’s taxes.
Capital expenditures included major improvements to buildings, such as a roof replacement. Under the old tax law, the value of these projects will depreciate over time, and building owners were allowed to expense just the depreciation. In fact, building owners had to spread out those deductions as long as 39 years.
How the New Tax Code Impacts Your Re-Roofing Project
In December 2017, The Tax Cuts and Jobs Act became law, which is the largest tax reform legislation to pass in this country in over a generation. The new tax code allows for businesses to expense all roofing-related costs under section 179. The code now specifically names “non-residential roofs” as “qualifying property” under section 179.
The National Roofing Contractors Association reports that all costs associated with commercial roofing repair and replacement can be completely expensed in the current tax year. This is instead of having to expense just the depreciation of a re-roofing project over multiple years.
In addition, the amount that business can expense in a single year has been doubled from $500,000 to $1 million, making it more advantageous for a company to undertake major renovation and repair projects. The total amount that any company can expense under Section 179 has also been raised from $2 million to $2.5 million.
The best news is that these changes to the tax code are in effect now, which means that building owners can schedule their re-roofing projects at any time during 2018 and write off the entire cost on their taxes.
Quality Commercial Re-Roofing and Repair in Central Missouri
If your company is ready to take advantage of these new tax code benefits, All Seasons Roofing, LLC is prepared to help. We have been serving local businesses throughout Central Missouri since 2004 with the installation and maintenance of our state-of-the-art flat roof systems.
Our company specializes in EPDM and TPO roofing systems to provide our clients with the best products available. We want to make sure that you receive long life out of your commercial roof and make good use of your available tax credits.
Contact us today to discuss your re-roofing or repair project and be sure to ask about our flat roof annual maintenance program that can extend the life of your commercial roof.