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Can Your Commercial Roof Be a Tax Deduction?

The end of the year is approaching, soon to be followed by tax season. With that in mind, you might be wondering, is a new roof tax deductible?

Changes to the 179 Tax Deduction may enable you to write off the cost of your commercial roof. Under the Tax Cuts and Jobs Act, the amount of money you can deduct as a business expense is increased (up to $1 million) rather than the property expense being capitalized and depreciated. Building improvements, such as industrial roofing restoration, may qualify as an eligible expense. The amount allowed as a tax deduction can’t exceed the total amount of taxable income for your business during that given tax year.

We know many facility managers and property owners are hoping 2021 brings with it a more optimistic outlook, especially regarding the pandemic. While good physical health is paramount, we also wish you good financial health. Let’s explore the possibilities of tax savings.

How Can I Claim A Deduction for My Commercial Roof?

While your new roof on your building or facility may qualify as a one-time tax deduction,  we encourage you to follow guidance issued by the IRS and to check with your tax professional for advice.  

Also, the new Section 179 rules include roof repairs to your commercial building if other qualifying capital improvements have made those roof repairs necessary.

We are experts in roof restoration, not in taxes, so please keep that in mind. If this new tax deduction makes a roofing project more affordable for you, we encourage you to schedule a free commercial roof inspection with us.

Can I Claim Roof Damages as A Business Expense?

Under Section 179, improvements or “betterments” to your commercial roof may be deducted, including roof restoration services, whether they be SPF, metal restoration, or a preferred Conklin roof system. If storms, hail, or other acts of nature have jeopardized the integrity of your roof, you can immediately expense the cost of this type of roof work. Again, check with your business attorney or tax professional before committing to any roof restoration project.

Can I Get A Tax Break for A Cool Roof?

You can get a tax break for a cool roof if you obtain certification that the property meets energy-efficiency standards. A tax deduction of up to $1.80 per square foot is available to owners of commercial buildings that save at least half of the heating and cooling energy as compared to certain ASHRAE standards. IRS Notice 2006-52 clarifies the process that enables the owner of industrial property to achieve energy-efficiency certification. The roof is part of a building’s “envelope,” so any savings wrought through cool roof restoration should apply.

Are There Other Ways I Can Save Besides a Tax Deduction?

You may be able to deduct small roof repairs and the cost of your annual commercial roof inspections. Maintain a good record of your building’s roof maintenance and consult your tax advisor to determine possible tax write-offs.

Another way you can save money on roofing costs is to choose a Conklin single-ply membrane system. You’ll get superior protection from wind and hail, increase the energy-efficiency of your building, and avoid the expense of a complete roof tear-off and replacement.

Finally, keep up with your roof’s maintenance and regular inspection plan to discover minor weak spots and prevent them from becoming costly extensive damage.

Mid-State Roofing, located in Hartly, Delaware, provides quality roofing systems throughout the state and surrounding areas. Owner Danny Yoder specializes in flat and low-slope roofing repairs and has decades of roofing experience under his belt. He offers up to 18-year warranties.

Learn more about Mid-State Roofing and schedule a free roof inspection today.

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