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Updated over 5 years ago on . Most recent reply

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Jim Young
  • Rental Property Investor
  • Roswell, GA
22
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Roof Replacement (Capex) vs. 1/2 Roof Replacement (Opex)?

Jim Young
  • Rental Property Investor
  • Roswell, GA
Posted

The roof on my townhouse is nearing the end of it's useful life.  The ridge cap recently blew off and I'm facing the old "repair or replace" question - with a twist.  It's a simple peaked roof.  The front slope faces SW and is exposed to the sun.  I could replace it right now and feel good about it.  The back slope is more protected and has more life left.  I don't feel so good about replacing it right now.  A roofing contractor suggested something I'd never heard of: just replace the front half.  He said that way it would be considered a "repair" and could be expensed as opposed to replacing the whole thing which would be a capex and would have to be depreciated, not expensed.  Does that make sense?  Have any of you done that?  Thanks!

  • Jim Young
  • Most Popular Reply

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    Natalie Kolodij
    • Tax Strategist| National Tax Educator| Accepting New Clients
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    Natalie Kolodij
    • Tax Strategist| National Tax Educator| Accepting New Clients
    ModeratorReplied

    Ah yes, the old tax law educated roofer. 

    Call your accountant- ask them. 

    Having it be a repair vs cap may not have any benefit on your taxes. 

    Depending on cost and how much is replaced as this "repair" it still may need to be capitalized. 

    Before you spent thousands on something that will impact your taxes, get the correct answer for your specific tax circumstances from your tax pro. 

    business profile image
    Kolodij Tax & Consulting

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