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Level 1
June 6, 2019
Solved

Added new roof to the rental property. I would like to take a one time cost/expense for the replacement. I DON'T want to depreciation. Where to put this cost????

  • June 6, 2019
  • 5 replies
  • 42 views
Will be selling rental later this year. that's why I would like to do a one time cost.  Do I have to take depreciation on a replacement roof?? Can I do a one time expense??
Best answer by

The IRS has taken a very strong position that a new roof must be capitalized and depreciated.

You may choose to include the cost as a repair.  However, please be aware that if the IRS decides to take a closer look at your return in general or your schedule E specifically, they will disallow this as a deduction.

5 replies

Answer
June 6, 2019

The IRS has taken a very strong position that a new roof must be capitalized and depreciated.

You may choose to include the cost as a repair.  However, please be aware that if the IRS decides to take a closer look at your return in general or your schedule E specifically, they will disallow this as a deduction.

Level 2
December 23, 2020

I too replaced a roof on a commercial rental I own.  Under the latest tax law,  can I not take a 179 deduction on part of the cost?  If so what is maximum percent of total cost?

Level 15
December 23, 2020

@boca jerry   Yes, for a COMMERCIAL property, Section 179 is allowed.  The maximum percentage is 100% of the cost.