Roofing Articles

Discover tips and tricks for growing your roofing business efficiently and professionally.

Tax Time: Section 179 Deductions for Roofing Companies

Section 179 is a tax deduction opportunity created to encourage small businesses to purchase, finance, or lease equipment for their company. The Section 179 Deduction makes growth easier to achieve for small businesses, like family-run roofing companies. 

section 179 tax deductions for roofing companies

Here, we take a closer look at the Section 179 Deduction and what roofing equipment you can use as business write-offs. 

What is Section 179?

While qualified business assets have been eligible for tax deductions for some time, before the improved Section 179 was implemented, the government required you to spread out deducting the cost of your equipment over several years. Since 2017, however, greater benefits have been added to the Section 179 tax code, making same-year equipment purchases fully deductible up to a certain value. 

With these updates in place, up to $1 million of eligible assets purchased by a business can immediately be deducted from their 2019 taxable income. This has a phase-out limit of $2.5 million with assets purchased in that tax year. 

To see how much you could save by taking advantage of Section 179 tax deductions for roofers, check out this Section 179 calculator for the 2019 tax season

NOTE: The IRS has increased the immediate tax deduction amount for eligible assets purchased in 2020. That new limit is $1,040,000.

What business expenses can I write off for 2019?

Now’s the time to revisit all your business purchases from last year. Take a look below at a few examples of tax deductions your roofing company could use for the 2019 tax season. 

New Roofing Equipment

Dumpsters

Whether it’s a 10- or 20-yard container, dumpsters are an important part of roofing debris management. Confirm with your accountant whether your new dumpster can be used as a write-off under the Section 179 tax code. 

Dump Trailers

If you invested in the Equipter RB4000 for your roofing company in 2019, you could save up to $12,000 with the Section 179 Deduction.

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The Equipter RB4000 and RB2000 are eligible for the Section 179 tax deduction, so don’t forget to mention these to your tax advisor this tax season!

Don’t have an Equipter on your crew? This self-propelled dump trailer streamlines debris management, eliminating double- or triple-handling shingle debris. Click below to hear what customers are saying about the towable RB4000.

 

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Vehicles

For qualifying vehicles, the deduction is the same whether you leased, purchased, or are financing vehicles like pickup trucks and cargo vans. However, be sure to consult your tax accountant for specific vehicle restrictions under the Section 179 Deduction

New Office Equipment

Computers

At Equipter, we love the versatility of Apple products. We value the long-lasting battery life of MacBooks and the way these laptops integrate with other forms of Apple technology for faster, more efficient communication. In addition, connecting to Apple TV makes marketing, sales, and leadership meetings much easier and helps everyone stay on the same page.

If you purchased any kind of computer (desktop, laptop, tablet), confirm with your accountant that it’s eligible for a business write-off.

Software

There are multiple roofing software options available to make managing your roofing business easier for you and your crews. These software options help streamline the bidding process, simplify managing finances with integration with Quickbooks, and facilitate easy ordering from supply companies like ABC Supply Company.

Most software purchasable by the general public (excluding proprietary or custom-coded software/databases) can be used as Section 179 tax deductions for roofing companies. 

Make sure your roofing business takes full advantage of Section 179 tax deductions this year and in upcoming years as you purchase equipment to take your company to the next level. 

Looking to invest in an easier way to roof in 2020? Find out which Equipter dump container is right for you



 

*NOTE: Equipter is not certified to provide legal/financial advice. Consult your tax advisor for full details on what can and cannot be claimed as deductions on your business taxes.

Due to the COVID-19 epidemic, the US Government has postponed the deadline for filing your 2019 taxes to July 15, 2020.