Your roof is more than just a protective barrier for your home. Without it, your living space would be uncomfortable. An efficient roofing system can increase your property’s curb appeal and value. It can also help reduce your heating and cooling bills. 

When it’s time to replace a roof, people often ask if their project’s cost is tax deductible. In normal circumstances, roof replacement costs can’t be deducted from your taxes. However, there are certain instances where you can deduct the cost of a new roof from your annual taxes. A trusted roofing company shares more information in this post.

Home Improvements VS Home Repairs

Home Improvements

It may help to know that the Internal Revenue Service (IRS) looks at home improvements and home repairs differently. When it comes to tax deductions, home improvement is something that can contribute to the value and longevity of your property. Maintenance and quick repairs don’t fall under this category. 

Home improvements cost considerably more than repairs. If you make significant changes to your existing space, such as adding a new room or replacing your roof, it’s considered home improvement. Pool installation, HVAC replacement and kitchen remodeling are other typical tax-deductible home improvements. 

Home Repairs

According to the IRS, home repairs don’t add substantial value or life to your property. It won’t take long to fix minor issues with your roof. Addressing these problems doesn’t usually cost a lot or significantly increase the lifespan of your home. If you need a small portion of your roof fixed, the IRS would likely consider it a home repair. 

Roof Replacement: Is It Tax Deductible?

A new roof made with high-quality materials is one of the best things you can invest in for your home. It can increase the value and life of your property, meaning it’s considered a home improvement. While you can deduct your roofing costs from your yearly taxes, you can’t subtract the total value at once. A depreciation schedule is necessary for this scenario. It pertains to dividing the cost of your roof over its lifespan. 

To qualify for tax credits, you must choose energy-saving materials, such as certified metal or asphalt shingles with cooling granules. These roofing options can deflect solar radiation, reducing the heat that travels to your living space. As a result, your HVAC system works less and you save on cooling costs. However, the installation cost of your new roof won’t be deducted from your annual taxes. 

If your roof is old or deteriorating, don’t wait too long to replace it. Putting off a roof replacement will increase the likelihood of extensive water damage. It can also compromise the safety and health of your loved ones. When leaks occur, mold can grow in your indoor spaces. It produces spores that can cause respiratory issues and trigger allergic reactions or asthma attacks. 

Tax Deductions for Home-Based Businesses 

You can deduct your roof replacement cost from your taxes if you run your business at home. It’s beneficial for people who use a part of their residence for business purposes. The roofing costs for the area where your office is located can be deducted from your yearly taxes. 

It’s necessary to exclusively use a portion of your property for business to qualify for this tax deduction. For instance, if you use 20% of your home as your office, 20% of your roof replacement cost could be tax deductible.  

Tax Deductions for Rental Properties

Are you getting a new roof for a rental property? If so, you might be qualified for a tax deduction. It’s the same for replacing roofs in commercial structures. Sometimes, you can get the complete deduction in the same year you got a new roof. To confirm if this is the case for you, you can look into your local tax laws or consult a roof installation expert. 

Tax Deductions When Selling a House

You might be eligible for tax deductions when you sell your house. It’s helpful to keep documentation of improvements you have made to your property, such as replacing a roof, adding a new room and building an outdoor deck. You can place your receipts in a binder or scan them and save the images on your computer. 

Keeping receipts or records of all the roofing jobs made on your property can give buyers peace of mind. They will feel reassured knowing the house is in good shape and received proper care. You will find it easier to sell a home that looks great and requires less work. On the other hand, a poorly maintained or damaged roof can be a deal breaker for potential buyers. 

Choose a Dependable Contractor for Your Roofing Project

It’s dangerous for individuals without training or proper gear to climb a ladder or walk on a roof. Don’t attempt to install a roof on your own for your safety. Reputable roofers have the appropriate tools and equipment for safe and seamless installation. DIY roofing jobs are also the most common reasons for voided warranties.

Moreover, replacing a roof can involve substantial costs. You must choose a reliable company for your project to maximize your investment. Trained roofing contractors have the skills, knowledge and experience to do the job right the first time. With an efficient roofing system, your family will stay comfortable and safe no matter the season. 

You want to work with a contractor with a physical office address in your area. It’s also vital that they have valid licenses and insurance. Local roofers are easier to locate and contact if you experience issues with your new roof. They can respond faster if you need emergency repairs after an extreme weather event. Also, locals know your area’s building codes and if permits are necessary for your project.