Depreciation Life for Roof

Hi all,

Would a roof for a nonresidential building be depreciation on 39 year life as a building improvement or 15 year life as a qualified improvement property? I was reading this article: https://www.irs.gov/newsroom/new-rules- ... d-jobs-act , and it said that we can expense a roof for section 179 purposes, but I wasn't sure if it means it's classified as qualified improvement property.

My client can't take the section 179 deduction due to income limitations The definition of a qualified improvement property is a improvement to a building's interior so I was assuming it should be depreciated 39 years. But just wanted to confirm.

Thanks everyone in advance for any help.

your understanding matches mine - 179 pulls in roofs in addition to QIP. Since the roof isn't interior, it doesn't qualify as QIP.

You should look into the partial disposition rules.

You should also confirm a "new roof" actually needs to be capitalized under the regs at 1.263(a)-3. Under the examples, a replacement of shingles / addition of a roof membrane doesn't necessarily need to be capitalized, and can be treated as a repair.

If you were misled by that IRS article, (which you are not), you would not have been the first. Qualified real property may be deducted under section 179. A roof is qualified real property under section 179(e)(2)(A). Qualified improvement property is qualified real property under section 179(e)(1). Two different items under the same category.

Just about the best you can hope for is to establish that the roof work was a repair instead of an improvement or disposing of the old roof.

your understanding matches mine - 179 pulls in roofs in addition to QIP. Since the roof isn't interior, it doesn't qualify as QIP.

You should look into the partial disposition rules.

You should also confirm a "new roof" actually needs to be capitalized under the regs at 1.263(a)-3. Under the examples, a replacement of shingles / addition of a roof membrane doesn't necessarily need to be capitalized, and can be treated as a repair.

Great! I will use a 39 year life. I will also confirm with the client on what exactly was done on for the roof.

Thank you as always HenryDavid for your help. You also helped my client avoid taking a deduction that he wasn't entitled to for the demolition question I had posted a couple weeks ago. I really appreciate it.

If you were misled by that IRS article, (which you are not), you would not have been the first. Qualified real property may be deducted under section 179. A roof is qualified real property under section 179(e)(2)(A). Qualified improvement property is qualified real property under section 179(e)(1). Two different items under the same category.

Just about the best you can hope for is to establish that the roof work was a repair instead of an improvement or disposing of the old roof.

Thank you for your help! I will check to see what exactly was done on the roof.