When looking at major home repairs, you’ll want to exploit every cost-saving measure possible. You may wonder if any of these expenses are tax-deductible. Here we’ll present some ways that home renovation might be a qualified deduction, including roof repair.
Home Improvement Projects Are Not Tax Deductible
Roof repairs are considered home improvement projects. Since a roof is such a vital component of your home, it almost seems like this type of project should have a higher classification, but that’s not the case. Since you can’t deduct most home improvement costs, you can’t deduct a roof repair.
An exception to the rule is if your home improvement project involves an energy-efficient system. For example, if you installed solar panels on your roof, you may be able to deduct this cost when you file your taxes.
If you sell your home, you can capitalize on the cost of roof repair. You have to pay taxes on any profit made. Your profit will be calculated by subtracting the home’s original cost and any qualified home improvement costs from the new purchase price of your place. A roof repair is considered a qualified home improvement, so it can reduce your tax basis. You should keep track of your receipts and make sure you include the repair costs when you file your taxes for the year you sold the home.
One other scenario in which you can deduct roof repair costs involves a rental property. If you repair a roof on a property that you rent out, you can list the repair cost as an expense, which can be deducted from your tax return.
A Trustworthy Roofing Company
At Division 1 Roofing, we’ve helped many customers in Powell, OH and the surrounding areas with roof repair. Our highly trained staff is held to high standards, and you’ll be pleased with our professionalism and efficiency. In addition to roof repair, you can rely on us for roof replacement. If your roof was damaged by a natural disaster or storm, trust our trained insurance restoration specialists to deal with the insurance company on your behalf. Call us for information!