Flynn Group of Companies

What this means for organizations like yours

The Act expands the expensing limits under Section 179; taxpayers may now deduct up to $1 million on their income taxes for the year as an expense, as opposed to having the cost capitalized and depreciated.

The Act also broadens eligibility for Section 179; this is where your organization may benefit. As of January 1 2018, qualifying property includes “improvements to nonresidential real property placed in service after the date such property was first placed in service: roofs; heating, ventilation, and air-conditioning property; fire protection and alarm systems; and security systems.”

This covers roof repairs, waterproofing, and complete replacement of existing roofs.

HOW TO GET THE MOST VALUE FROM THE CHANGES

Oftentimes, a full roof replacement is deferred in favor of budget-stretching repairs and maintenance. These tax code changes are a golden opportunity to give your building a new lease on life, and renew protection for the assets within.

To qualify for the deduction in any given tax year, the roof must be purchased (or financed/leased) by December 31, 2019. As always, Section 179 can change every year; it has even changed mid-year. So if you’ve been considering replacing your building’s roof, the next few months are a great time to do it.*