What is the depreciation life of a roof on a rental property?
Why 27.5 years when shingles wear out sooner
The IRS treats a roof as a structural component of the building, not as separate equipment. Structural components share the building's recovery period, so a shingle roof that may last 20 to 25 years in Georgia still runs on the 27.5-year schedule.
The alternative system
If you must use or choose the Alternative Depreciation System, residential rental property placed in service after 2017 uses 30 years instead. This comes up with certain elections, such as a real property business electing out of the business interest limit.
When the roof is replaced before it is fully depreciated
The old roof's remaining basis does not have to keep running. A partial disposition election lets you deduct it in the year of replacement. Without the election, the old roof keeps depreciating with the building while the new roof starts its own schedule.
Special situations
- A duplex you live in: only the rented portion is depreciable.
- Short-term rentals: very short average stays can change how the property is classified.
- A roof paid by insurance: the claim proceeds affect basis and possibly gain.
General information only; confirm with a tax professional. On the claim side, some landlord policies settle at actual cash value, so see ACV vs RCV.