Re-Roofing Projects: A New Tax Cut For You?
Building maintenance and upkeep is not cheap. Roofing is no exception to this. Regular maintenance as well as re-roofing your property can add up, so you need to have a budget already set aside. Buying and owning a building is a large financial investment, likely the largest you will ever make, so you want to ensure you always get the most return possible.
Re-Roofing Projects: A New Tax Cut For You
With expensive repairs and maintenance, this does not always seem possible to do. But there is good news. Thanks to some changes to the Tax Cuts and Jobs Act of 2017, non-residential building owners now qualify for a new re-roofing tax break. The Act expanded the definition of ‘qualifying property’ so under Section 179 roofing projects can now get you a tax cut. Prior to this, any investments made into re-roofing a non-residential property had to be capitalized and depreciated over a period of 39 years. With the change of definition for qualifying property, taxpayers can now fully expense roofing improvement costs right away. Read through the information below to see if your company is eligible for this preferential tax treatment.
What is Section 179?
The tax code originally only allowed building owners to recover the costs of machinery or property over multiple years. Section 179 now allows you to recover the costs much faster and you do not have to wait years to get the return on your investment. Expensing limits have been increased to a maximum of $1 million, with a phase-out threshold of $2.5 million. The new changes are more favorable for non-residential building owners, so you would be advised to look into this right away.
Roofing is a Qualifying Property
The definition of qualifying property now includes re-roofing materials as long as the property is non-residential. This new definition also includes fire protection, alarm systems, heating, ventilation, and air conditioning, which makes for big benefits to non-residential building owners. In order to fully qualify for the tax cut, the improvements need to be made after the property was first put into use. Taxpayers can now include roofing improvements and since the expenses associated with re-roofing projects can be high, these taxpayers will be pleased to reap returns on their investment much sooner than previously allowed.
Check with your tax professional to determine if your company or building applies for these tax cuts. If any of your building improvements qualify, you can begin enjoying these changes and favorable tax treatment today.