Roof repair can be costly, especially when your roof has sustained major damage. It is, therefore, understandable if the question comes up: “Is roof repair tax-deductible?”
The answer: It depends!
Before we have a closer look at this question, let’s start with a little disclaimer: As roofing professionals, our expertise lies in questions surrounding your roof, naturally. What we cannot provide is tax advice. That’s why the following should only be considered general information. It is also important to note that tax laws are subject to constant change. Therefore, you need to make sure that any potential deductions are compliant with current tax laws.
Please contact your local IRS office or tax advisor for more detailed information that’s applicable to your particular case.
What is a tax deduction?
A tax deduction is a reduction in your taxable income. Taxable income is the amount of money that is subject to taxes. The amount of taxes you pay is based on your taxable income. Therefore, a tax deduction reduces the amount of taxes you have to pay.
Is roof repair tax deductible for your home?
- If your home is solely used for your residential purposes, then there will probably be no tax deduction possible: General roof repairs in the context of regular wear and tear are part of home improvement measures.
- However, if the roof damage results from a natural disaster like a hurricane, an exemption from this rule might apply.
- If your home is also the location of your business (if you are self-employed), then you should be able to deduct at least a certain percentage of the repair costs from your taxes.
- If the residential property is used solely as a rental property, this means that you use it commercially, not privately. That makes the roof repair costs a business expense and, therefore, tax deductible.
Is roof repair tax deductible for a commercial property?
In general, you should be able to consider repairs on the roof of your commercial property a business expense. However, these are subject to certain requirements:
- They must be “ordinary and necessary.” Ordinary expenses are those that are common and accepted in your industry. Necessary expenses are those that are appropriate and helpful for running your business.
- They must be “for your business.” Business deductions are only allowed if they are directly related to the business. For example, if a roof repair extends the life of the building and avoids the need for a roof replacement, it is a business expense.
- You must be able to prove that the repairs were necessary and that they extend the life of the property. You need to keep the receipts for all repairs and might need to add a description of what work was done to the deductions section of your tax return.
Among other things, deductible roof repairs may include the following:
- Replacing or repairing the roof covering
- Replacing or repairing the roof deck underlayment
- Replacing or repairing the roof framing
- Changing the pitch of the roof
- Changing the type of roof from a shingle roof to a metal roof
Your roofing experts in Tampa
As already mentioned above: It’s the IRS or your tax advisor who can best advise you regarding the deductibility of your expenses. However, when it comes to questions about roofing, you have found your experts – right here! Don’t hesitate to give us a call! We look forward to hearing from you!