IRS provides tax inflation adjustments for 2021

November 17, 2020

In 2017, the Tax Cuts and Jobs Act expanded the definition of qualified real property eligible for full expensing under Section 179 of the tax code to include improvements to nonresidential roofs. This was a major victory for NRCA, as it was the result of years of efforts to educate lawmakers regarding the economic benefits of improved tax treatment of nonresidential roofs.

Recently, the IRS released Revenue Procedure 2020-45, which provides updated inflation adjustments for tax year 2021 for numerous items in the Internal Revenue Code, including Section 179. Under Section 179, the IRS updated the maximum amount a business may expense in 2021, indexed for inflation, to $1.05 million, and the phase-out threshold increased to $2.62 million.

NRCA members may want to inform existing and potential customers of this favorable tax treatment for nonresidential roofs. View more information and obtain a sample letter you can use to market this tax treatment to expand your business.

Tags: Business

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