You need to consult with your CPA on this one. My opinion would be that a roof replacement is a capital improvement and thus would qualify for same from an accounting view point.
A roof replacement could be both as it is part of the structure and could certainly be classified as a capital improvement vs. roof repairs - which would be repair and maintenance.
Capital improvements are costs related to making changes to improve capital assets, increase their useful life, or add to the value of these assets. Capital improvements may be structural improvements or other renovations to a building, or they may enhance usefulness or productivity.
Capital improvements, which must be capitalized, are distinguished from deductible repairs, which are more minor in nature. For example, the following are considered deductible repairs:
wallpapering and painting
repairing a roof
replacing retaining walls, tuck pointing
These items are considered capital improvements:
installing new doors or windows or replacing doors and windows
replacing a roof
installing an air conditioning or ventilation systemb
installing a burglar alarm system
Sep 20, 2011