Do you need a new commercial roof system for your building or office? If so, you’ve probably been putting it off because of the cost. The tax code didn’t really give business and commercial property owners much of a break when making that purchase either. That no longer is the case with the new tax code that was passed in late December. In fact, the new code is written in such a way that business and commercial property owners are encouraged to make this investment in their building and improve their facilities for the future.
Old Tax Law = Depreciation
Under the old tax laws, money spent on roofing was classified in two different ways. Minor repairs, such as inspections, leak repairs, and maintenance, were considered “expenses” that could be credited to that year’s taxes. However, major repair work like commercial roof replacements were considered a “capital expenditure,” which meant they depreciated over time like your office furniture, electronic equipment, or commercial vehicles would. The depreciation could be used as a credit on your taxes, but not the overall value of your commercial roof system, meaning the investment would cost a lot and you wouldn’t see much in the way of returns on your taxes for several years.
New Tax Law = Expensable
However, under the new tax laws, major roofing costs have been reclassified as “expensable,” meaning building and commercial property owners can now write them off on their taxes, for the year the commercial roof system was installed and see a significant reduction in their tax burden. In other words, business owners now have the incentive to spend and invest in their buildings. This will help them increase their property value and see a tremendous reduction in their tax liability for the year. This includes installation of a Commercial roof system. Being able to expense these costs means you can freely invest them in your business, reap the rewards, and see a substantial relief on your tax burden for the year. It should come as little surprise that many businesses are expected to invest in a new Commercial roof system in the coming months to take advantage of this program.
Call the professionals at Tri-State Commercial Roofing to evaluate your roof for a consultation on your commercial roof replacement Today!
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