Is a Roof Replacement Tax Deductible? Here’s What You Should Know
A roof replacement is a significant investment in your home, and one that can be difficult to prepare for financially. Because of this, it makes sense to explore all your options when it comes to reducing the overall cost, including incentives, rebates, and potential tax benefits. But is a roof replacement actually tax deductible? Typically no, but there are some factors to consider.
At Dolan Roofing & Construction, our goal is to make the roof replacement process as streamlined and easy on customers as possible. Replacing your roof is a stressful time, and the least we can do is ensure you’re fully informed and the work is completed efficiently. Here’s what you should know about tax advantages and your roof.*
Is a Roof Replacement Tax Deductible?
The short answer is that no, a roof replacement on your home is typically not tax deductible. Replacing your roof is typically considered a home repair, which is an expense that is incurred in order to maintain your home’s current condition. These types of expenses are not considered tax deductible, so there is no real tax advantage when it comes to replacing your roof.
Along the same lines, roof repairs are also not tax deductible for the same reasons, and the same is true of roof maintenance. So while your insurance may cover some or all of your repair or roof replacement, it will likely not be tax deductible.
Are There Exceptions to This General Rule?
All that said, there are a couple of situations where a roof replacement may be tax deductible to some degree. Let’s take a look at these specific scenarios.
The Roof Replacement Significantly Increases Your Home’s Value
If your roof replacement is one that actually qualifies as a significant improvement, it could be tax deductible. Typically, this involves something like a major remodel, an addition, or significant structural improvements.
Per the IRS, a home improvement is a renovation or alteration that increases the value of your home or extends its useful life. To be tax deductible, it must be a “capital improvement,” which is distinguished from an ordinary repair.
You’re Replacing the Roof of a Business
The other major exception is for commercial roofing. While most residential roof replacements will not be tax deductible, commercial roof replacements can be through a specific deduction: Section 179.
We’ve written a complete blog post on the Section 179 deduction that we recommend reading if you’re faced with a commercial roof replacement. The short version, though, is that this deduction can often be used for certain property improvements, including roofing work.
Looking for Other Options? Consider Roof Financing
While it may be disappointing to learn that roof replacements are generally not tax deductible, this isn’t the end of your financial options when it comes to funding your new roof. If insurance doesn’t cover your full replacement, roof financing can be a good option to spread out the cost of your new roof while avoiding a more major financial commitment like a home equity loan.
We offer roof financing through a few partners here at Dolan Roofing, and you can learn more at this page.
Don’t Let Finances Delay Your Roof Replacement!
If you’re faced with a roof replacement or other major roofing project, don’t let finances cause delays. Major roofing work should never be put off, as any problems with your roof now will only worsen with time.
With multiple financing options available, our team at Dolan Roofing in San Antonio aims to make the roof replacement process as painless as possible. We can replace your roof today while spreading the out-of-pocket cost over the course of several months, helping you fit your roof into your budget. Contact us today to learn more!
* – Dolan Roofing & Construction is NOT a financial advisor nor tax professional and the opinions expressed in the blog post do not constitute financial advice. Please consult a professional before making any tax-related decisions.