Section 179 And Roof Restoration: The Tax Case For Coating

Replacing a commercial roof is a capital improvement, typically depreciated over 39 years. Restoring one is usually treated as maintenance.

Why that matters

A maintenance expense can often be deducted in full in the year it is incurred, dramatically changing the after-tax cost of the project. On a $200,000 project the difference in first-year deduction can exceed $190,000.

Talk to your accountant

Every building and ownership structure is different. Bring your accountant the scope of work in writing before you sign, and ask specifically how the work will be classified.