No, don't enter it in Expenses, it gets entered in the Assets/Depreciation section. You will be asked about the Section 179 deduction and bonus depreciation (not available for roofs) options in the Assets section. If your taxes went up when you used the 179 deduction, it was probably because it dropped your business income by a large amount which caused you to lose other credits (that are dependent on income levels). And when you take the regular depreciation, you don't offset as much income and the other credits are less affected.
To qualify for a Section 179 deduction, the asset must be:
- Tangible (you're able to touch it, which excludes intangible assets like patents or copyrights)
- Purchased (not leased) for business use
- Used more than 50% in your business
- Placed in service (purchased, acquired, or converted to business use) during the current tax year
- Acquired from a non-related party
Your Section 179 deduction amount can't exceed your net business income for the year, but if it does, you can carry the excess over to a future tax year. But if taking the 179 deduction causes you to lose out on other more valuable tax credits, you should skip the 179 deduction. Also, if you take the deduction, you must retain business use of the asset until the end of its useful life. If that isn't possible, you must pay back part of the deduction as a Section 179 recapture. @stevebee92653
Depreciation of Business Assets - Special Bonus Depreciation and Enhanced Expensing (Section 179) for 2020.
Guide to expensing roofing costs - The IRS states that a new roof will depreciate over the course of 27.5 years for residential buildings and over the course of 39 years for commercial buildings.
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