Replacing your roof is a major investment for any homeowner, but can you deduct part of the cost from your taxes? If you intend to replace the roof on your home this year and are considering ways to make it more financially feasible, understanding how these projects are treated under tax laws may help. In this post, renowned contractor Expert Contracting explains how a new roof replacement is tax deductible
Type of Roof
Depending on the type of roof you choose to install, it may be considered an energy-efficient improvement, which makes it eligible for certain deductions or credits.
Certain deductions and credits have limits based on homeowner’s income level. You can hire an accountant to help you know the possible roof tax deductions from your taxes under these provisions.
Type of Home
Typically, only primary residences qualify for most tax credits and deductions related to home improvements like replacing a roof. However, there are some exceptions where rental properties may also apply.
Purpose of the Roof Repair
Different rules apply to your roof depending on whether its replacement is for functional or aesthetic purposes. Replacing a worn-out roof is considered an expense incurred rather than a superficial improvement in value. Your roof repair contractor can help you determine whether your repair may be functional or aesthetic.
How to Claim a Tax Deduction for a New Roof
When claiming a tax deduction for a new roof, speak with an accountant or other knowledgeable financial expert to explain and enumerate the forms and records needed. They can also accurately pinpoint which deductions apply to your roofing project. Roofing companies can also provide more information to help you maximize deductions, such as choosing the right materials and other options.
Expert Contracting is one of the best roofing companies known among many homeowners in West Seneca, NY. We’re a GAF Master Elite® roofing company that can replace and repair quality roofs from the manufacturer and ensure it’s covered in their long-term warranties. Our team is always ready to handle your roofing needs. Call us at (716) 572-7303 or fill out this contact form to get a free estimate.