No one likes an unexpected bill, but a roof repair can feel worse than most.
Costing anywhere from a few hundred to a few thousand, these projects can put a serious dent in your wallet.
Worse, because almost half of us can’t afford a $500 emergency without concern, the situation can sometimes feel stressful.
That’s why you’d be reasonable to wonder, Is a roof repair tax deductible?
After all, even if you have to spend cash now, is it possible to get some of it back when tax season rolls around?
The answer to this question is surprisingly complicated, but there are a few ways you can get deductions or credits for roofing upgrades.
If you’re hoping to save some cash, here’s what you should know.
Is a Roof Repair Tax Deductible?
The short answer to this question is “almost never.”
Whether you’re replacing a few missing shingles, upgrading your flashing, or tackling any other minor repair, the IRS does not consider these minor projects tax deductible.
Even major repairs like roof leaks or mold remediation don’t qualify.
These repairs may be necessary to make your home more livable, and they may add value to your property, but carrying them out won’t affect your taxes.
However, there is a situation in which the IRS might consider these repairs tax deductible: after a natural disaster.
Severe monsoons, hurricanes, or other natural disasters can wreak havoc on homes throughout the area.
Wind and rain damage can tear roofs apart, affecting hundreds or thousands of people in a region.
When this occurs, you may be able to get a tax deduction on your roof repairs, but only if you live in a region that’s declared a federal disaster area.
In that case, the IRS would provide details for homeowners to determine whether their roof repair is a deductible loss.
What About Roofing as a Home Improvement?
Now that we know repairing a roof won’t often help you save on taxes, how do home improvements factor in?
If you’re replacing a roof, here’s what you should know.
Home Repairs vs. Improvements
The IRS treats repairs and home improvements differently.
A repair is something you do to make your home livable again.
These projects may add value to your home, but their primary purpose is to maintain its condition.
Often, roof repairs include keeping water and mold at bay.
Home improvement projects, on the other hand, are not necessary to make your home livable.
However, they add to the property’s long-term value and usefulness.
A roof replacement is a good example, as most people do this task before significant water or flooding enters their home as a preventative measure.
This project upgrades an existing part of the home.
Saving With Capital Improvements
If saving on taxes this year is your goal, you’re still out of luck: home improvements don’t qualify as a write-off on your annual taxes.
However, a roof replacement can qualify as a write-off when you sell your home.
These projects are called “capital improvements.”
You can deduct a certain percentage of their cost as part of your capital gains.
Saving With Energy-Efficient Roofing Materials
If you perform a roof replacement with energy-efficient roofing or insulation materials, you may be eligible for tax credits.
You would do this under the Energy Efficient Home Improvement Credit.
The credit is good for up to 30% of the costs for all eligible home improvements.
However, you’ll want to do your research: some components are not included.
Roofing and air-circulating fans, for example, don’t qualify.
Common materials that do qualify include asphalt roofs with cooling granules or metal roofs with pigmented coatings.
These materials must meet or exceed Energy Star standards.
If you aren’t sure, contact an experienced roofing contractor in your area for insights.
Also, note that you will need to do a full roof replacement with these materials to qualify for the credit.
Partial replacements or repairs won’t be eligible, and you must also do the replacement on your current home, not a new property.
As you begin your project, remember that you’ll need to keep all documentation and receipts related to your new roof to provide them to the IRS.
The current program runs until December 31, 2032.
Saving Money With Roof Upgrades
If you don’t qualify for any of the savings we’ve mentioned above, is a roof repair still worth the cost?
The easy answer is “Yes!”
Ignoring minor damage that isn’t affecting your quality of life might seem like a smart move right now, especially if you’re trying to save money.
Gutter issues or minor pest infestations, for example, might feel easy to ignore.
However, leaving these problems to fester gives them the chance to grow, allowing them to snowball into more expensive repair projects or even a full roof replacement.
In addition, roof repairs make your property more energy efficient.
This makes it easier for you to reduce your home’s energy bills and save money month over month.
If you have an aging roof, a roof replacement may be ideal instead.
Though this project can be much more costly, it can also give you access to more modern, energy-efficient materials than your current roof has while lowering your risk of future issues.
Patching frequent leaks is just kicking the can down the road!
Investing in a new roof can also improve your home’s value.
Even better, these upgrades can last anywhere from 15-70 years, depending on the type of roof material you choose.
Choose Cost-Effective Roofing Solutions
We get it: no one wants to shell out for roofing upgrades.
However, now that you’ve finished wondering, “Is a roof repair tax deductible?” we hope you understand that even if you can’t catch a break from the IRS, there are still plenty of good reasons to repair or replace your roof!
If you’re hoping to find the most cost-effective solutions, trust the team at JLC Roofing.
We pride ourselves on offering top-quality materials and craftsmanship without breaking the bank.
To learn more, give us a call at (623) 878-9832 or contact us online for a free, no-obligation estimate.
Are you wondering if surprise roofing contractors‘ roof repair services are tax deductible? JLC Roofing has you covered. For 20+ years, we have been committed to delivering a 5-star roofing experience to each of our clients. Contact us today at (623) 878-9832 or request an estimate online.