How do I depreciate a new roof for a rental property?

[mjpb52]

I would be very interested in how that is done since I am also in Florida.  It is unwritten but the writer is correct we had to replace our roof after 12 years (note no damage), just a excuse to drop you.  It seems to the insurance company that using roof liability is easiest to get out of any committment. 

[KrisD15]

Your question does not give a lot of information concerning your situation, however a new roof on nonresidential rental property is eligible for a Section 179 Deduction. 

Section 179 Deduction is not depreciation, but acts much the same way. 

Section 179 does have additional limits, such as not having the ability to generate a business loss. If the Section 179 election is made, and the entire amount is not used the year the election is made, the remaining amount can be carried forward and used indefinitely. That could explain how the cost of the roof is claimed over 5 years in your situation.

@rodmathiseb 

This is a long thread of questions and answers, do you have a specific issue you are asking a tax question about?

@mjpb52 

[mjpb52]

Understood the Key is your comment of NON RESIDENTIAL RENTAL Property.  Unfortunately we fall into that issue since the property is residential.  It looks to me like we will have to recapture after 12 years unless the rules change .

[DianeW777]

For residential rental property the tax law is clear. A new roof would be added as a new asset in the year it is complete.  It will use the same 27.5 year recovery method as the original rental house uses but of course with a new date placed in service. See the information in the link below for a casualty loss.

The insurance companies may have their specific rules for insurance, however, the tax law is not changed.  If your roof is destroyed before the 27.5 year recovery period, then in that year you would use the casualty loss portion of the tax law to deduct the remaining balance. See the link below for more information and steps to entry.

• What if I have property that was lost or damaged through casualty?

@mjpb52 

[mjpb52]

Thank You, living in Florida is always challenging environment with the insurance companies.  Appreciate your answer.