A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. The new law increased the maximum deduction from $500,000 to $1 million. It also increased the phase-out threshold from $2 million to $2.5 million. For taxable years beginning after 2018, these amounts of $1 million and $2.5 million will be adjusted for inflation.

179 Tax Deduction for Commercial Roofing in Texas

Commercial Roofing now classified as an expense under the new law.

The recently enacted Tax Cuts and Jobs Act offers clear benefits to commercial real estate owners. This law expands Section 179 of IRS tax code. Certain changes allow taxpayers, instead of capitalizing the property’s cost, to deduct the entire purchase price of certain types of property from their income taxes.  

179 Tax Deduction for Commercial Roofing
Sections 179 Overview

Sections 179 Overview

 Section 179 allows taxpayers to depreciate and capitalize the cost of assets without first capitalizing them. This is in contrast to bonus depreciation, which allows taxpayers to first capitalize an asset and then depreciate it. The Section 179 deduction was not available for income derived from a business in the past. However, it could be carried forward.  

 Improvements to an interior part of a nonresidential building were exempted from Section 179 expenses. The improvements must have been made within three years of the building’s first use. Section 179 expenses were restricted to $500,000 in 2017, and only tangible personal property, computer programs, and, upon election, qualified leasehold, retail or restaurant improvements.

179 Tax Deduction for Commercial Roofing in Denton, Texas

New Law

These building improvements, which were not eligible for a write-off under the expanded Section 179 provisions, are now eligible for immediate write-off.

  • Commercial roofs
  • Heating, ventilation, and air-conditioning (HVAC), property
  • Alarm systems and fire protection
  • Security systems

The best thing? The best part? All provisions apply to property that was placed into service in 2018.

179 Tax Deduction for Commercial Roofing
Roof Replacement Time

Roof Replacement Time

Building owners who had been putting off replacing their roofs are now in luck. Roofs no longer qualify for the Section 179 deduction. Remember that the dollar amount for a roof replacement will include any rooftop equipment, such as HVAC units or company-specific items.

You might want to think about the tax advantages of roof replacement as you plan for the next year. We’re happy to answer all your questions about roof replacement or repair.

Since 1996, The JBN Group Commercial and Residential Roofing is a leader in innovative commercial and industrial roofing solutions. We offer commercial repair, replacement, and maintenance for all companies in Texas and the surrounding area. Our team offers a combination technical expertise, custom solutions, and high quality workmanship to each project.

You can find out more information about choosing a commercial roofer Denton Texas by clicking the button. Or you can call us at 469 340-0838.