New Roof in 2021-Asset or Home Repair?

Forum|Forum|4 years ago
February 7, 2022
5 replies
34 views

I had originally put in my new roof cost as a home repair for my home business and got a nice refund amount for it.

Then I was told the roof should be put in Assets for depreciation but when I did, I lost that big chunk and instead got $3 back.

Is Assets really where I should be putting this and not in repairs?

Is there a long game here?

TurboTax Self Employed Online

ThomasM125

Level 15

It should be listed as an asset.

A roof replacement is not an expense or repair, but you may be able to treat it as such for a commercial building in 2021, but not if it was for a residential property. You can write if off over it's estimated useful life if it was put on a residential house or unit. For a commercial property, you can elect section 179 depreciation which may allow you to write off the entire cost in the year you have it installed.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

mysgynAuthor

Level 3

I'm self-employed and have an at home business. A roof was listed as one of the things that you could list for home repairs and improvements. And then it would take the portion or percentage of the house. But then when I got to assets it also listed the roof as an example...

ThomasM125

Level 15

@mysgyn If you repaired your roof, it would be a repair. But if you replaced it, then it would not be a repair but would be an improvement, which is an asset.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"