Part of the appeal in owning a home versus renting are the tax deductions for certain aspects of homeownership. Many people get into a mortgage loan thinking their new ownership will bring thousands of dollars in tax savings and it can, just not necessarily in all the areas you may hope for.
Home Tax Deductions
The costs of roof replacement can run upwards of $10,000. Unfortunately, the cost of a new roof does not qualify for an IRS tax deduction. Many people assume maintenance costs are deductible from tax bills, and the fact is they simply aren’t. There is an exception to this rule, which is if the costs of roof repair or replacement are related to a disaster. Many of the affected Hurricane Sandy victims will likely be eligible to write-off any out of pocket expenses related to repairing and rebuilding their homes.
There is also another silver lining, the costs of replacing a roof directly adds to the value of the home. The increased home’s value then raises the tax basis of the home, which can influence the amount of deductions allowed on other aspects of the home. The higher home value could also lower the amount of capital gain taxes charged at the time of selling the house. In this way, the costs of replacing a roof can be looked at as an investment, and one that provides lesser known benefits.
