Do you need a new roof over your commercial property? If so, you’ve probably been dissuaded by the sheer cost of such an endeavor. On top of that, the tax code didn’t even really give business and commercial property owners much of a break when making that purchase either. But that may no longer be 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 may be encouraged to make this investment in their infrastructure and improve their facilities for the future.
How it Works
Under the old tax laws, money spent on roofing was classified in two different ways. Minor repair work, such as inspections, hole patching, and leak sealing, were considered “expenses” that could be credited to that year’s taxes. However, major repair work like 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 roof, meaning the investment would cost a lot and you wouldn’t see much in the way of returns on your taxes for several years.
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 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, as it will not only help them increase their own property value, but help them see a tremendous reduction in their tax liability for the year, which opens a lot of additional capital for further investment in business operations.
This includes maintenance, repair, or replacement work for roofing features as well, including skylights smoke vents, and more. 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 roof in the coming months to take advantage of this program.Schedule a roof inspection for your business by calling one of the Colorado Springs commercial roofers Divine Roofing, Inc. today at (719) 497-1005.