Much like other monetary investments, improvements to your roof are affected by taxes. We wanted to break down the new tax reform so that you can reap the most tax benefits with your nonresidential roof with the expanded Section 179.
Tax reform is essentially an altered way in which taxes are then collected or managed by the government. This new tax reform bill for 2020 keeps the SALT deduction. Still, it limits the total deductible amount to $10,000, including sales and property taxes and income. SALT deduction, or deduction of state and local tax, allows taxpayers like yourself to reduce local tax payments on your federal tax returns.
So what does Section 179 mean for roofing taxes? Under the Tax Cuts and Jobs Act, you can deduct up to $1 million on your income taxes as an expense without the cost of your property to be depreciated. The deduction limit has more than doubled. This reform includes improvements that are made to your commercial roofing. The government wants you to invest in yourself and your building. By investing in commercial roofing, you can deduct the full price of that purchase on your taxes within that same year.
You might now be asking, what qualifies under this reform? All businesses qualify, and the tax deduction covers business supplies, upgrades, improvements, and property. More specifically, roofing refers to roof replacement, repairs, and waterproofing.
Limitations within Section 179 include:
- The dollar limit of $1 million.
- The purchase must be made within Jan. 1 and Dec. 31 of that same year.
- The amount dedicated cannot exceed the amount of taxable income for the business during that specific year.
The Section 179 tax deduction proves to be an incredibly ideal opportunity for those with nonresidential roofing projects. If you were hesitant before, be confident now more than ever in taking care of those roof problems your commercial building is facing. Now you can write off your contractor bill as a tax deduction!
Call us to learn more about how you can boost the tax benefits of repairing or replacing your commercial roof.
TSpark Enterprises, headquartered in Tallahassee, Florida offers a wide range of roofing and construction services. Visit our website or call (850) 766-1340 to get a free estimate and embark on your construction journey today!