Can I claim depreciation on my home?
Short answer. On your taxes, no, not for a home you live in: depreciation deductions apply only to rental property or the business-use part of a home, such as a qualifying home office. On an insurance claim, depreciation means something different, and if you have replacement cost coverage you can usually claim the held-back depreciation on your roof after the repairs are done.
Tax depreciation
- Primary residence: no depreciation deduction. Improvements like a new roof add to your cost basis, which can reduce taxable gain when you sell.
- Rental property: residential rental buildings are generally depreciated over 27.5 years. Land is never depreciated.
- Home office: a qualifying office used regularly and exclusively for business may allow depreciation on that portion, with tax consequences when you sell.
Tax rules have details and exceptions, so talk to a tax professional before claiming anything.
Insurance depreciation
On a homeowners claim, depreciation is the reduction in value for age and wear that the insurer subtracts from replacement cost. It shows up on your estimate as a column and a total. Whether you can claim it back depends on your coverage:
- Replacement cost coverage: the depreciation is usually recoverable once you complete the repairs and send the final invoice, often within a deadline.
- ACV coverage or an ACV roof endorsement: the roof's depreciation is not paid back.
- Non-recoverable items: some lines may be marked non-recoverable even on a replacement cost policy.
How to claim insurance depreciation
- Confirm the estimate shows recoverable depreciation.
- Complete the work within the policy's time limit.
- Send the final invoice and any requested photos to the adjuster.
- Endorse the check, along with your mortgage company if it is named.
Step by step help is in recoverable depreciation on roofs, and the coverage difference is explained in ACV vs RCV.