Is roof replacement considered a capital improvement or structural improvement??

What is the difference between a capital improvement & structural improvement??
In Property Management - Asked by Wilson C. - Sep 15, 2011
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Answer(s)

Jay Z.
Broker/Agent
Phoenix, AZ

No. For IRS purposes that is considered a repair (or maintenance). To qualify as a capital improvement, you have to be adding to the existing structure. Adding a 3rd bathroom or another 1,000 sq ft to a warehouse would be a capital improvement.

Sep 16, 2011
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Chris R.
Broker/Agent
Denton, TX

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
caulking seams
repairing a roof
mending plaster
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
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scott p.
Owner/Investor
Louisville, KY

Replacement of entire roof would be a capital improvement depreciated over the life of the building. If you replaced a section of the roof then a repair.

Sep 23, 2011
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

I would say capital improvement since the useful life of the roof is 15-20 years for a quality commercial roof. This cost can be depreciated.

Mar 1, 2012
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