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  1. #1
    Join Date
    Mar 2009
    Posts
    3,269

    CPA questions about required roof replacement for insurance coverage

    I recently had to replace a roof on a rental property to maintain insurance coverage. Normally roofs replacements have to be depreciated over time rather than write off as necessary repair expense BUT does the scenario change if it's required to maintain insurance coverage ?

  2. #2
    Join Date
    Jan 2010
    Location
    2 hours from anything
    Posts
    10,732

    CPA questions about required roof replacement for insurance coverage

    I’m not aware of such an exception and it goes against the foundations and principles of depreciation. A quick glance and I see nothing about expensing repairs in full if it is required to maintain insurance.

    https://www.irs.gov/publications/p52...link1000280325


    For something this specific you should get the advice of a tax accountant who specializes in rental units.

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  3. #3
    Join Date
    Oct 2004
    Location
    50 miles E of Paradise
    Posts
    15,566
    Under IRC 179 taxpayers can expense something over ~$1million in capital expenditures used in the production of income in year of acquisition.

    Don’t know if that applies to Residential real estate.

  4. #4
    Join Date
    Feb 2011
    Posts
    2,440
    It does. For 2022 you can expense $1,080,000 of cap X.


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