I put a roof coating over my torched down roof on my rental house at a cost of $2669. Is this deductible as an expense or does it have to depreciated as an improvement?

[jerry2000]

Please explain what you mean by "my torched down roof".

[view2 · Accepted solution]

Generally a torch down roof  needs a maintenance coat every 5 years or so,as long as the old roof has not been replaced or substituted with new insulation and roofing, repairs qualify as a current expense.  

Tangible Property Regulations - 080713 v1 and IRS Revenue Section 263(a) define the tax differences between repairs or maintenance and replacement of long life building systems and components.

Under the new IRS regulations, property is improved whenever it undergoes a:

Betterment

Adaptation, or

Restoration.

If a residential rental  building has a leaky roof and a sealing coating is applied over the existing roof to stop the leaks it may be considered a routine repair as it does not improve the roof.

 The IRS defines repairs as those that “do not add significant value to the property or extend its life.” They are reasonable in amount and are necessary to keep the property in habitable condition.

The new regulations have created a few gray area and you should have documentation to support any of your expenses.