Section 179: Why you should replace your roof now
The Tax Cuts and Jobs Act has broadened Section 179, expanding the tax code to cover nonresidential roofs. At Elevated Commercial Roofing, we understand that the outside of your business is just as important as its inner workings. Here’s how you may be able to fully expense your roof replacement in 2020.
What is Section 179?
Simply put, Section 179 allows businesses to expense certain qualifying equipment immediately – and roofing is in that category! Previously a business may have expensed the cost of qualifying equipment over several years through depreciation, deducting only a portion of the full amount each year. Now, the full amount of the qualifying asset can be deducted in the same tax year as long as it is put into use between January 1 and December 31 of the tax year you are claiming.
Other changes include an expansion in the deductible amount, increasing from $500,000 to $1,000,000. And, since the definition of qualifying real property has been expanded, that means that for the first time your business can expense a roof replacement.
Are there limits?
Yes. The deduction limit in 2020 is $1,000,000 and the spending cap is $2,500,000. After hitting the $2,500,000 mark, the deduction begins to phase out on a dollar-to-dollar basis up to $3,500,000. In simpler terms, your business can spend up to $2,500,000 and deduct $1,000,000. After that, the amount you can deduct decreases, and once you hit $3,500,000 the deduction goes away altogether. But there is also 100% Bonus Depreciation in 2020, meaning you could potentially spend over $1,000,000 and still deduct the full cost of your qualifying asset.
Why should you act now?
Section 179 can change each year without notice. Smart businesses will take advantage of this beneficial tax code while they can. At Elevated Commercial Roofing, we offer reliable and quality roof replacement services at an affordable cost, backed by our warranty of up to 30 years. We are the top choice among commercial roofing contractors throughout Texas, with industry certifications from the Roofing Contractor Association of Texas (RCTA), the North Texas Roofing Contractors Association (NTRCA), and the Better Business Bureau (A+ Rating). Learn more about our roof replacement services.
Customers of Elevated Commercial Roofing know that they can trust us to not only deliver an exceptional product but also to help make decisions on along the way. If you have questions on how you can take advantage of Section 179, need direction on financing, or are just wondering how to get the ball rolling on your roof replacement, contact us today.Schedule a meeting