Having your roof replaced can be a major investment, but knowing if it is tax-deductible can help you decide if it’s worth spending. It’s also important to familiarize yourself with the relevant regulations and consult an expert for clear guidance on the best way to proceed.
Is a New Roof Tax-Deductible?
When it comes to roofing, you may wonder if a new roof is tax-deductible or not. Generally speaking, replacing your home’s roof would fall under the “improvement expenses” category, which can often be deducted from your taxes. To qualify for any tax deductions concerning a new roof installation, some criteria must be met.
Overview of Tax Deductions
A tax deduction is a reduction in taxes that you owe based on income and applicable regulations. Typically, this requires that expenses be documented with invoices or receipts. Tax deductions can come in different forms such as deductions for charitable donations, education costs, medical bills, and so on.
Qualifying for a Tax Deduction
Whether you are qualified for a tax deduction depends on the type of roofing work you require. Minor roofing repairs, based on the IRS definition on home repairs, do not qualify for tax deductions. That’s because they are not as expensive as getting a new roof and they don’t actually add years to the life of your home.
Replacing an old roof with a better one, meanwhile, is considered a home improvement and thus makes it eligible for tax deduction. Keep in mind, however, that its cost is not deductible outright. You have to maintain a depreciation schedule and divide the total cost over the course of the roof’s life. From there, you’ll be able to take advantage of tax deduction benefits based on the expenses of the current year. This may be complicated to figure out, so working with a roofing expert who understands the tax process is key.
Contact Crown Roofing for All Your Questions
For your roof installation needs, turn to Crown Roofing LTD. Our team is ready to answer any questions you have related to tax deductions. Our experienced experts can provide the best guidance and advice so that you get the most out of your investment for your home. We serve homeowners in New Westminster and Surrey, BC. Give us a call today at (604) 370-6288, or reach us online to request a free estimate.