Is a New Roof Tax Deductible? What Homeowners Need to Know
Every year, homeowners across the Northern Virginia area invest in new roofs to protect their homes from harsh weather, aging materials, and unexpected damage. But one question seems to be coming up more often: Is a new roof tax deductible?
While Insured Roofs is not a tax expert, we’ve done some digging to help you understand what may (or may not) be deductible when it comes to your new roof. Let’s break it down
Is a New Roof a Tax Deduction?
The short answer? Not usually. According to the IRS, home improvements—like replacing your roof—are considered capital improvements rather than deductible home repairs. This means you typically can’t write off the cost of a new roof in the same way you might with business expenses or medical costs.
However, before you sigh in disappointment, there’s good news. While your new roof may not be an immediate tax deduction, it could provide long-term financial benefits in other ways.
When Can a New Roof Offer Tax Benefits?
Energy-Efficient Upgrades (Tax Credits)
If you opt for an energy-efficient roof, you may qualify for a federal tax credit. Under the Energy Efficient Home Improvement Credit,
homeowners who install ENERGY STAR-certified roofing materials, such as cool roofs or metal roofs with reflective coatings, may be eligible for a credit of up to 30% of the cost (capped at $1,200 annually). Be sure to save all receipts and certification documents from your roofing contractor to support your claim.
We recently had a client from Arlington upgrade to an ENERGY STAR-certified metal roof. When tax season rolled around, they were able to claim a portion of their installation costs as a credit, lowering their total tax bill.
Home Office Deductions
If you work from home and use a portion of your home exclusively for business, you may be able to deduct a percentage of your roofing expenses under the home office deduction. If you’re a homeowner who runs their business from a dedicated home office and it takes up a certain percentage of your home’s total square footage, you should be able to deduct that same percentage of the cost as a business expense. This typically only applies if you meet IRS requirements for home office deductions—meaning the space must be used solely for business purposes.
Rental Property Roof Replacements (Tax Deductible!)
If you own a rental property, roof replacement costs can often be deducted as a rental expense. The IRS classifies this as an improvement expense, meaning you can depreciate the cost over time—typically 27.5 years for residential rental properties. If you own a rental home and had to replace the roof due to storm damage, you can claim the cost as a depreciable expense, reducing his taxable income over time. Always work with a tax professional to determine the best strategy for claiming rental property improvements.
Can Insurance Coverage Impact Tax Deductions?
If you’re replacing your roof due to storm damage and your insurance company is covering the cost, you won’t be able to claim the expense as a deduction. However, if you paid out-of-pocket costs beyond what insurance covered (such as an upgraded material or higher-end shingles), you might be able to apply for tax benefits like depreciation or energy credits
Talk to a Tax Pro
While we at Insured Roofs can help you choose the best materials and ensure a flawless installation, we always recommend speaking with a tax professional to understand how your roof replacement may impact your specific tax situation. If you’re considering an energy-efficient upgrade or replacing your rental property’s roof, it’s worth looking into potential credits, deductions, and long-term financial benefits.
Ready for a new roof? Whether it’s energy savings, storm protection, or a much-needed upgrade, Insured Roofs has you covered. Contact us today for a free inspection and let’s get started!
Disclaimer: This blog post is for informational purposes only and should not be considered tax advice. Always consult a qualified tax professional for guidance on your specific situation.