roof repair

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I had to do a full roof repair due to hail damage. I read that I need to go into my Turbo Tax account and put it in. Do I do that now or when I do my taxes. The hail damage left holes in my roof would start leaking if not repaired.

O

Opus 17Answer

Level 15

Expert Reviewed

If you are affected by a federally declared disaster, you can take a casualty loss deduction for the amount of the loss. You must put the FEMA number of the disaster on your tax return and the IRS will match your address as well, so you can't claim this loss for an ordinary storm.

If you have a qualified casualty loss due to a disaster, the amount of the loss deduction is the loss in fair market value of your home by the casualty. This usually requires an appraisal to establish. However, the cost of repairs can be used as a substitute for the value of the loss as long as you restored the property to as-was condition and did not improve it. For example, if your roof was old and failing, and you replaced it with a new roof, then the cost of replacement is not a fair estimate of the loss of value because your property is better than it was -- only part of the cost would be a deductible casualty loss. You must also reduce your claimed loss by your insurance deductible and by any insurance coverage, even if you were covered by chose not to make a claim.

If this storm was not a qualified federally declared disaster, then you can't deduct the cost of repairs or improvements to your personal home. The improvement adds to your cost basis and may reduce your capital gains when you sell.

DoninGA

Level 15

An improvement to a personal residence, not used as a rental or in a business, is not reported on a tax return. The cost of the improvement can be added to the basis of the home when it is sold.

O

Opus 17

Answer

Level 15

Expert Reviewed

If you are affected by a federally declared disaster, you can take a casualty loss deduction for the amount of the loss. You must put the FEMA number of the disaster on your tax return and the IRS will match your address as well, so you can't claim this loss for an ordinary storm.

If you have a qualified casualty loss due to a disaster, the amount of the loss deduction is the loss in fair market value of your home by the casualty. This usually requires an appraisal to establish. However, the cost of repairs can be used as a substitute for the value of the loss as long as you restored the property to as-was condition and did not improve it. For example, if your roof was old and failing, and you replaced it with a new roof, then the cost of replacement is not a fair estimate of the loss of value because your property is better than it was -- only part of the cost would be a deductible casualty loss. You must also reduce your claimed loss by your insurance deductible and by any insurance coverage, even if you were covered by chose not to make a claim.

If this storm was not a qualified federally declared disaster, then you can't deduct the cost of repairs or improvements to your personal home. The improvement adds to your cost basis and may reduce your capital gains when you sell.

Hal_Al

Level 15

Q. Do I do that now or when I do my taxes?

A. When you do your taxes.

There is no provision, in TurboTax (TT) for adding information on an "as you go" basis. The 2025 TT software will not be available until mid November 2025. The TT software/program you currently have is only for tax year 2024. Entering info now will mess up your 2024 return.

O

Opus 17

Level 15

@Hal_Al wrote:

Q. Do I do that now or when I do my taxes?

A. When you do your taxes.

There is no provision, in TurboTax (TT) for adding information on an "as you go" basis. The 2025 TT software will not be available until mid November 2025. The TT software/program you currently have is only for tax year 2024. Entering info now will mess up your 2024 return.

However,

If this storm was declared a qualified federal disaster, you have the option of filing an amended 2024 return to claim the loss there (even if the loss occurred in 2025), which may result in a refund from your 2024 taxes rather than reducing your 2025 taxes. At this point (July 2025) it's a toss-up as to which would be paid first, a refund from an amended 2024 return, or your 2025 return filed in February 2026.