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Are Commercial Membranes Roof Expenses Tax-Deductible

By 561media - June 8, 2021

Tax Deductions: Commercial Membrane Roof Expenses?

If you own and or operate a commercial property in South Florida then you know how expensive it can be to maintain, repair or install a new roof. The weather in Fort Lauderdale and its surrounding cities can go from 90 plus degrees and sunny to thunderstorms with torrential rain in the blink of an eye. This means your Florida roof is subjected to some of the most severe weather conditions there are. This can lead to costly repairs and maintenance charges wracking up. Fortunately, those costs can be considered overhead, which means you may be eligible for certain tax deductions. The following are some of the tax tips for commercial roofs you should keep in mind in 2021 and 2022.

Can I Deduct the Cost of Roof Repairs and Maintenance?

You can write off any work which restores your building back to its original condition (restoration), adds value to your building (betterment), or customizes it for a different use (adaptation). Previously, you would have to depreciate these items over a certain number of years following the work you did. This includes if you:

  • You replace your roof – If you replace your existing roof with a useable deck or storage or another usage.
  • Replace your old BUR roof from Deluxe Waterproofing & Caulking  – If you install a new single-ply membrane, then you’re upgrading your roof and adding value.
  • Restore the condition – If your roof is experienced wear and tear and you have a commercial roofer restore it.

However, under Section 179 of the recently passed Tax Cuts and Jobs Act, you can immediately expense the cost of this type of roof work in the year it was performed if you qualify. Just keep in mind that there are limits on these costs, which include the following:

Introduced in 2017 and made applicable for tax year 2018, IRS section 179 gives tax relief for entities that perform improvements to nonresidential property. Qualifying property for Section 179 and put into service after Jan. 1, 2018, and includes:

  • Roofs
  • Heating, ventilation, and air-conditioning property
  • Fire protection and alarm systems
  • Security systems

The maximum amount you can expense is $1.02 million. The phase-out threshold is still $2.55 million. These limits are effective if you’ve performed betterment, restoration, or adaptation work on your roof after December 31, 2017. Amounts have been indexed for inflation in 2019.

What Are the Benefits of Deducting Roof Repairs For Commercial Property Owners?

Commercial property owners in South Florida and around the country can now deduct the full cost of upgrades to their building including roof repairs in the year that it was installed. Previously they had to depreciate the repairs/upgrades over a span of 39 years with the 179 tax deduction. Keep in mind that this applies only to commercial buildings. For tax purposes, the IRS defines commercial roof maintenance as:

  • Repairs or maintenance resulting from wear and tear caused by your trade or business
  • Repairs or maintenance needed to keep your commercial property in its normal condition and operating efficiently
  • Repairs or maintenance resulting from regular wear and tear
  • Repairs or maintenance required more than once during a 10-year period or during its class life

Benefits of Waterproofing for Commercial Buildings

Our waterproofing service ensures quality protection for your home and your possessions. Waterproofing services provide several benefits that keep your investment safe by:
  • Protecting our commercial building from outside elements
  • Preserving the condition & value of your commercial building
  • Enhancing the safety & comfort of your commercial building
  • Preventing possible water damages

Need Waterproofing For Your Commercial Property? Call Deluxe Waterproofing Today!

If you think your South Florida commercial property is in need of professional waterproofing, don’t hesitate in calling us today! Our company’s team is composed of industry experts who are trained to provided properties with the best waterproofing around. We feel more than certain that when you choose us, you’ll be absolutely happy with our work as you’re added to our growing list of satisfied customers. For any inquiries, you may call us at 954-623-3777 or visit our contact page.