Replacing your roof is a major investment, and homeowners often wonder if they can get any tax benefits from the expense. While a new roof typically isn’t directly tax-deductible, there are some situations where you may qualify for tax credits or deductions. Let’s break down what you need to know about tax savings when installing a new roof.
In most cases, a new roof is considered a home improvement rather than a repair. The IRS does not allow homeowners to deduct home improvement expenses, including roof replacements, from their taxable income. However, there are a few exceptions where you might be able to receive tax benefits.
If you install an energy-efficient roof, you may qualify for a federal tax credit. The Energy Efficient Home Improvement Credit (previously the Non-Business Energy Property Credit) allows homeowners to receive a credit for certain energy-efficient upgrades, including:
As of 2023, the credit covers 30% of the cost of qualified improvements, up to a maximum amount set by the IRS. Keep in mind that labor costs are not included—only materials.
If you use part of your home exclusively for business, you may be able to deduct a portion of your roof replacement costs under the home office deduction. The percentage you can deduct depends on the size of your dedicated home office compared to your total home space.
Similarly, if you own a rental property, replacing the roof is considered a capital improvement, and you may be able to depreciate the cost over time. This means you can deduct a portion of the expense each year, reducing your taxable income.
To ensure you get the most out of any potential tax benefits from your new roof, follow these key steps:
While a roof replacement might not always be tax-deductible, it is a valuable investment in your home’s durability and energy efficiency. If you're considering a new roof, the BC crew can help you too! Contact Bartlett Contracting, LLC for a free estimate and professional guidance on choosing the best roofing solution for your home.
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