If you’re a Florida homeowner, either a hurricane will get your roof or the insurance company will. Is a new roof tax-deductible? Let’s look at routine replacements and damaged roofs.
My roof is old. / The insurance company is making me replace my roof.
All roofs need to be replaced eventually. Exactly how long that is depends on your roof and how ridiculous your insurance company is being.
If you’re replacing your roof due to age, what you definitely can’t do is write off the entire cost in the year you replaced your roof.
In some cases, a roof replacement could be considered a capital improvement. A capital improvement doesn’t lower your taxes this year, but it can lower potential capital gains taxes when you sell your home.
So when is a roof replacement a capital improvement? Roofing companies will tell you that any roof replacement is a capital improvement. Of course, they will. They want to sell you a new roof.
Tax pros will usually tell you it depends and then debate about the actual answer. The thing with capital improvements is that it’s supposed to be something that makes your home better. It’s not something that restores your home to its previous condition.