A new roof becomes "a permanent physical part of" the structure. Therefore it's classified as residential rental real estate and depreciated over 27.5 years.
Understand that depreciation is "NOT" a permanent deduction. When you sell the property, all prior depreciation taken must be recaptured in the tax year of the sale. You are taxed on that depreciation anywhere from 0% up to a maximum of 25%. Even if you did not depreciate an asset, then you must still recapture and pay taxes on the depreciation you "should" have taken. Two things can happen in the tax year you sell the property.
1)Recaptured depreciation is added to your AGI. This has the potential to bump you into the next higher tax bracket. Weather it does or not depends on the numbers. Chances are, a gain realized from the sale may knock you up a bracket. But like I said, it all depends on the numbers.
2) Recaptured depreciation is taxed as ordinary income anywhere from 0% to a maximum of 25%. It depends on your AGI.
