Roof Claim Answers

What is the MACRS depreciation life for a roof?

Short answer. Under MACRS, a roof follows the building it is on: 27.5 years under the General Depreciation System for residential rental property and 39 years for nonresidential real property, both straight-line with the mid-month convention. Under the Alternative Depreciation System, the periods are 30 and 40 years for property placed in service after 2017.

GDS versus ADS

Why a roof is not 15-year property

Qualified improvement property, which gets a 15-year life, covers certain interior improvements to nonresidential buildings. Roofs are not interior and do not qualify. Land improvements such as driveways and fences can be 15-year property, but a roof is part of the building itself.

Section 179 for some roofs

For tax years beginning after 2017, roofs on nonresidential real property can be expensed under Section 179, subject to annual limits and business income. Residential rental buildings do not qualify.

Recovery tables

Publication 946 has the percentage tables. For residential rental property, a full year is about 3.636 percent of cost, with a smaller first year depending on the month placed in service.

General information, not tax advice. Insurance depreciation is a separate system; see ACV vs RCV and roof age and insurance.

In depth

How do you read an Xactimate roof estimate from your insurance company?Reading an Xactimate roof estimate: line items, SQ, LF and EA units, remove vs replace, waste, regional monthlHow do you get recoverable depreciation released on a roof claim?How a roof claim's depreciation holdback is released: final invoice, proof of completion, policy time limits lWhat is the difference between ACV and RCV on a roof claim?Actual cash value vs replacement cost value on a Georgia roof claim, with a labeled example showing depreciati

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