We’ve heard from small and mid-size business owners time and time again that a recommendation for roof repair or replacement, however necessary, exceeds their current annual budget. We understand their concern, the planning necessary for such a decision, and the margins with which they operate. But it’s important to recognize the real cost of not pursuing needed repairs (such as permanent structural damage and injury) is far greater than the upfront costs.
It’s important not to let financial worry compound by inaction, and one tool available to commercial owners is Section 179 of U.S. tax code. Section 179 is an incentive created by the government that encourages businesses to invest in themselves, and the strength of that incentive has only increased with streamlined provisions to the law. Section 179 allows commercial owners to deduct the full purchase price of qualified equipment (such as a roofing or HVAC system) the same year it’s completed, rather than write it off over 39(!) years through depreciation.
This increase in purchasing power for businesses, up to $1,040,000 in 2020 thanks to the Tax Cuts and Jobs Act, should be utilized by every commercial owner to optimize their assets. One of the things this year has taught us as small business owners is to pursue cost effectiveness whenever and wherever available. The National Roofing Contractors Association (NRCA) has applauded Section 179 and the Tax Cuts and Jobs Act for its expanded definition of qualified real property, and many businesses have already used this provision to finance necessary repairs and purchases.
Contact your tax professional to see how your business can reap the rewards of Section 179, and call TriVAN at 877-487-4826 for all your roofing needs!
https://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-%20466.pdf
