Getting a Tax Break for Roofing Projects
Elite Las Vegas Roofing is your number one commercial roofing Las Vegas provider. However, we do not want to discuss your repairs – we want to share valuable information with you. Did you know that as a company you could recover costs on roofing projects if it is a qualifying property? Yes, you can under the “Tax Cuts and Jobs Act” introduced in November.
Now you may be wondering, “What is a Qualifying Property?” This property is a depreciable tangible personal property you purchased to use for business. Earlier to the new law taking effect you as a taxpayer had two choices. You had to take into consideration significant capital expenditures over years when doing depreciation. Alternatively, you had to forego larger costly projects to support smaller repair jobs.
Yes, we know this left you as a business owner frustrated, especially when doing major roof repairs.
A theoretical case:
Plastamid needs to fit a new roof appreciated at $1.5 million and expects a lifespan of 15 years. If the owner wants to recover the costs, the accountant would have to take the depreciation of the roof that is $100k per year over 15 years. Alternatively, if the proprietor wants to avoid reduction, the accountant can only subtract up to $500k in yearly operating cost.
Has anything changed? Yes luckily for commercial businesses the new Tax Cuts and Jobs acts is now allowing to undertake specific projects to avoid devaluation. The new tax laws applied to short-term investments with an expected lifespan of 20 years and less. These include business improvements. Moreover, to add to it, the new tax code increases the max asset limit to $2.5 million. What this means, in short, is that Plastamid can now deduct at $1.5 million in a single year?
What is the ultimate goal of the new tax law?
The new tax law set to last through to 2015 helps promote a steady increase in expenditure on building and improvements. However, remember we are not tax experts and encourage you to check with your CPA to see how the new tax law could lend a hand in your building enhancements or maintenance.
Do you do need commercial or residential roof repairs done feel free to give us a call? Please note that the article is for information use only – please contact your professional tax consultant with any related questions regarding your tax.