One of the most frequently asked questions about roof replacement is whether the project is tax-deductible or not. Aside from a few special cases, you can’t deduct the cost of roof repairs or a new roof. You can deduct the cost in increments over time if you replace the roof of a rental house. Moreover, if it’s your own home, you can only gain tax advantages once you sell.
The Internal Revenue Service (IRS) measures capital gains when you sell your property by deducting the adjusted basis from the sales price. The basis is the amount you originally paid for the house. Adjustments are any home improvements that add up to the value of the property, like a new roof.
The cost of roof repairs can be deducted if you own a rental property. Roof replacement is considered an improvement and not a repair because it adds value to the property. You can recoup the cost of a new roof by depreciating the value every year.
Whether you need a roof repair or replacement service, make sure to hire a reliable contractor. You can start looking for a good company online by searching “roofers near me.” Select a contractor with excellent reviews like Ken Morton & Sons. Do your research and check if they are licensed and insured.
The IRS defines casualty as the destruction of your property due to an unexpected event such as fire or storm. If your home loses value due to these events, you can claim the loss as a tax deduction. However, you can’t claim any casualty losses covered by your insurance company.
Choose Ken Morton & Sons for your roof replacement project. We are one of your most trusted roofing and siding contractors. Call us at (856) 582-8800 or fill out our online form to get a free quote. We provide home improvement services in Sewell, NJ.