Roof replacement is one of the biggest home improvement projects you’ll ever undertake, and it can be costly. Knowing how to use tax deductions related to roof replacement can help offset some of these costs. In this post, local roofer and exterior services contractor Home Pro Exteriors, Inc. shares everything to know about roofs and tax deductions.
The Basics of Tax Deductions for Roofs
In general, homeowners who have replaced their roofs can receive a tax deduction. That’s because roof replacement is considered a home improvement, which extends the life span of your home and adds substantial value to it. The IRS outlines certain parameters on what qualifies and which materials must be used. For example, in some cases, homeowners may have to pay annual taxes based on their spending.
More specifics on these roof tax deductions are in the next section.
Eligibility for Tax Deductions Based on Roofing Work
There are a few different types of roofing work that are eligible for tax deductions, such as:
- Installation of new roofs.
- Partial re-roofing/maintenance of existing shingles and tiles.
- Replacement of flashing along the edges or chimney caps to prevent leakage.
- Installation of protective materials such as plastic sheeting that minimize energy costs.
The deduction of the total cost of the roof replacement can’t be done at once. A depreciation schedule is required, which involves dividing the cost over the improvement’s serviceable life. From there, you can gain tax deduction benefits based on the expenses for the current year.
To receive a tax deduction, homeowners must provide documentation of the roof replacement they’ve undertaken, such as copies of all receipts and roofing contractor invoices, which must be kept in case there is an audit by the IRS. Furthermore, if any special material was used or additional repairs were done outside the scope of what was initially planned, these documents should also be kept on file.
Need certified roofing services that qualify you for tax deductions? Look no further than Home Pro Exteriors, Inc. We’re a licensed and insured roofing contractor that has helped many homeowners in your neighborhood with all their roof repair and installation needs. Call us today at (845) 343-1777, or fill out this contact form to get an estimate.