Do you want to access all your tax write-off money in the first year or over a 15 year period?

Waterproof and Coating system costs can be fully writen-off the first year, money that available immediately for other investments.  Conversely, Roof Replacement and Retrofitting project costs must be spread over the product lifespan delaying access to the write-off money.

Initially, the courts debated as to which tax classification Waterproof and Coating systems should belong:

Current Expense – Maintenance  -  any repair done to maintain operations, such as leak repair, gutter cleaning, etc. (full, immediate tax write-off).

Capital Expenditure – Major construction  - anything that “materially

enhances the value, use, life expectance, strength, or capacity as compared with the status of the asset prior to the condiiton necessitating

the expenditure.”  These major projects consist of roof retrofitting, replacement, building additions, etc. (gradual tax write-off, spread    over the lifespan of the products or systems (usually 15-20 years)).

In the past decade, the courts have consistently decided to catagorize Waterproof and Coating systems as “Current expense – Maintenance” for tax purposes.  The building manager gets the best of both worlds – he recoops the full tax write-off the first year because of the tax classification, and he has a roof system with all the qualities of a capital expenditure:  durability, leakproofing, warranty, and increased value of property.