Is a commercial flat roof tax deductible? The short answer is yes, for up to $1 million. Learn more below. 

Tax Cuts and Jobs Act

In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA). It changed the tax code resulting in property owners being able to deduct up to $1 million when they install a new roof system on their commercial property. This means any amount under $1 million for a roof project can be treated as a current expense. 

Previous Limitations

Previously, building owners were limited to depreciated value deductions over a prolonged period of time. The TCJA modified section 179(a) of the Internal Revenue Code. Additionally, the TCJA allows deductions for commercial roof maintenance and repairs. 

Section 179 allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service. The section applies to tangible personal property such as machinery and equipment purchased for use in a trade or business and, if the taxpayer chooses, qualified real property, like buildings. 

Qualified Real Property

Qualified real property now means qualified improved property and some improvements to nonresidential property, such as roofs or HVAC.

Consult With Your Tax Advisor

Consult with your tax advisor, before you make any business decisions. You should verify with them the deduction limitations and the qualification of your building.