Commercial Property Roof Section 179

[SpinalPilot]

Our LLC had a new roof put on a non-residential building that we lease to a corporation.  Im trying to section 179 it but it wont seem to let me.  It does give me the option but wont show up on this years deductions. any ideas?

[DianeC958]

Yes, you can take 179 depreciation for your roof under the new tax law.  The ability to deduct the full cost of your roof for a commercial building was expanded under the new law.

New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act

What is a Section 179 deduction?

[Edited 03/23/20 5:40 am PST]

[shmathes]

Did you resolve this problem last year?  I am having same problem this year. Turbo Tax only wants to give me 39 year depreciation without allowing me to deduct it all as 179.  How do I make turbo tax deduct it all?

[DianeW777]

As noted previously (and below), the roof, if placed in service in 2020, is eligible for Section 179. As noted, this must be for commercial property and not residential rental property.

The selection in TurboTax is very important to receive the desired results.

1.  Go to the asset that you want to expense under Section 179 (your roof that was placed in service in 2020)
2. The asset should be marked 'Real Estate Property' with a date of purchase in 2020
3. Select 'Specific qualified improvements' (below you will see roof, heating.., fire.., etc - see image below)
4. Next, put in the description, purchase price and the date placed in service in 2020
5. Continue to answer the questions on the next screen > Continue
6. On the next screen 'How Do You Want to Deduct this Item?' select 'I'll deduct the full value of the item this year'.
7. This will utilize the full amount on your Schedule C.

The new law also expands the definition of section 179 property to allow the taxpayer to elect to include the following improvements made to nonresidential real property after the date when the property was first placed in service: New Rules-Section 179 per TCJA

• Qualified improvement property, which means any improvement to a building’s interior. However, improvements do not qualify if they are attributable to:
  • the enlargement of the building,
  • any elevator or escalator or
  • the internal structural framework of the building.
• Roofs, HVAC, fire protection systems, alarm systems and security systems.

These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017