Can roof repair be tax deductible?

Repair or improvement?

For rental and business property, the IRS separates repairs, which keep property in normal working condition, from improvements, which better, restore or adapt it. Roughly:

• Usually a repair: replacing a few blown off shingles, resealing flashing, swapping a cracked pipe boot, patching a small leak.
• Usually an improvement: replacing the entire roof covering, replacing a large share of it, or upgrading to a different roofing system.

Repairs are deducted in the year paid; improvements are capitalized and depreciated. IRS Publication 527 covers residential rentals.

Your own home

Repairs on a personal residence are not deductible and, unlike improvements, they do not add to your cost basis. Two narrow exceptions exist:

• Home office: a share of whole house repairs may be deductible if you qualify.
• Casualty loss: unreimbursed storm damage from a qualifying declared disaster may be deductible after the $100 and 10 percent of income reductions.

Look at insurance first

If wind, hail or a falling limb caused the damage, your homeowners policy may cover the repair minus your deductible. That is usually worth more than any tax treatment. See wear and tear vs hail damage to judge whether the damage is likely covered, and how to file a roof insurance claim if it is. This is general information, not tax advice.