Own a commercial rental property? Made some improvements this year?
Maybe you updated the HVAC, added security cameras, swapped out worn carpet from the Bush administration, or just gave the place a much-needed facelift.
Here’s some good news: Section 179 might let you write it off right now… not over the next 39 years.
Yes, really.
Why Section 179 For Commercial Property Might Be Your Favorite Tax Break This Year
Normally, when you improve a commercial building, you have to depreciate those costs over decades. That means writing off a little bit each year, for up to 39 years.
But Section 179 lets you deduct the full cost of certain improvements in the year you make them. That’s money back in your pocket now… not sometime around retirement.
What Kinds of Improvements Count?
Section 179 is not a blank check, but the list of eligible improvements is better than you would expect.
You might be able to deduct:
- Roofing
- HVAC systems
- Fire protection and alarm systems
- Security systems
- Interior improvements (depending on what you did)
Here’s the catch:
The improvements must be made to a commercial building rented to a business, not residential.
Most exterior improvements (like paving a parking lot or adding signage) will not qualify.
No pools, no landscaping. But the essentials? They’re fair game.
Waiting Could Cost You Thousands
Section 179 has a cap and a cutoff.
If you wait too long or go over the limit, you miss out. There is no partial credit. You either take the deduction this year, or the IRS makes you stretch it out over decades.
No one wants to be stuck writing off this year’s upgrade for the next four decades.
Don’t Leave This One to Guesswork
These rules get complicated fast. Not every improvement qualifies. Not every taxpayer qualifies. And there’s a ceiling on how much you can deduct in a single year.
But if you made upgrades in 2024, you might be able to claim them right now… if you plan before the year ends.
We help commercial property owners spot these opportunities every week and make sure nothing valuable slips through the cracks.
Need help figuring out what qualifies?
Schedule a quick check-in with our team, and let’s see if Uncle Sam owes you for once.
