What You Need to Know About Roofs and Tax Deductions

One of the most pressing concerns many homeowners deal with when it comes to roofing replacement or repair is whether or not the cost of either improvement can be deducted from taxes. When it comes to understanding how roofs can be qualified for tax deductions,  you’ll need answers before making any decisions.

In this blog post, we’ll cover what is considered when determining if a newly-replaced or repaired roof is eligible for tax deductions and what documentation may be required to be qualified for it.

Is a New Roof Tax-Deductible?

The short answer here to this question is, “it depends.” To qualify, the roof must meet certain conditions related to energy efficiency and the type of materials used in its construction.

If your new roof includes approved insulation, waterproofing seals or a solar-powered fan, it may be eligible for an Energy Tax Credit of up to 10% of spending costs, which can amount to thousands of dollars in savings when filing taxes. Additionally, if a contractor has specified that some parts of your current roof will need replacing due to weather damage caused by hail or wind, then this qualifying damage could make you eligible for tax deductions as well.

Are Roof Repairs Tax-Deductible?

Like new roof construction, roof repairs may also qualify for tax deductions under certain conditions, but they usually are not. If the home has incurred weather-related damage, those repair costs can be deducted from the insurance settlement amount. Furthermore, you could receive a tax deduction on necessary energy efficiency upgrades if they are required due to damage from wear and tear caused by aging and exposure to harsh elements.

Documentation Requirements

If you hope to receive a tax deduction for either a new roof or repairs on an existing one, it’s important to have receipts from a reputable roofing contractor and/or material supplier detailing all expenses incurred in your repair or building project. This is also true if any other energy-efficiency improvements (like insulation) were conducted during the same period, as these upgrades may qualify for additional savings when filing taxes. If weather-related damage has occurred, documentation of insurance claims supporting those costs must also be kept on file to remain eligible for deductions.

Turn to Kingdom Roofing, Inc. for Your Roofing Needs!

For high-quality residential roof repair services, turn to Kingdom Roofing. We are committed to providing our customers with the most professional roofing services and installing only the highest quality products, correctly, on-time, and at the best value. Give us a call at (941) 217-2411, or fill out our contact form to request a free estimate.