As roofers, we have helped guide our customers in making the right choices for their homes. This article will cover the information you need to determine whether a new roof is tax deductible.
Understanding Tax Deductions
A home improvement tax deduction is a tax benefit that customers can receive for renovating their properties. Once an improvement qualifies for a deduction, it will lower the person's taxable income for the year.
Generally, these home improvements will improve the efficiency or value of the home. After the completed project, the person must show proof through various documentation for the project.
Criteria For Roof Replacement Tax Deductions
A roof replacement falls under the category of a capital improvement to the property. The new roof will increase the value of the home and increase its sale price in the instance of a home sale.
However, there are a few criteria that you need to know before receiving the deduction. A roof replacement is deductible if the property is your primary residence and not an investment property.
Additionally, a roof replacement should be done to improve the value of the home and not for an immediate repair that requires an insurance claim. A roof repair typically isn't tax-deductible as you are maintaining the property at its current value.
Save Documentation of the Roofing Project
When completing a roof replacement, it's crucial that you carefully document the project. You will need to save the project records and any expenses that were charged for the construction of the new roof.
These documents should include things such as the following:
- Receipts for Roofing Materials
- Invoices
- Contracts
- Inspection Photos
When filing a tax deduction on your taxes, you will need to include these documents in the file. The IRS will review them and determine if the project is deductible for that tax year.
Request a Free Roof Replacement Estimate
D-Wing Construction is a professional roofing company with a trusted reputation. If you want a new roof that brings decades of protection, look no further than our crews. We will provide a streamlined roofing installation service.
Contact us today to request a free pricing estimate and learn more about our roofing service options. Call to speak with one of our friendly representatives or fill out the online quote form.
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