We installed a new roof on our residential home in 2024. Is this a deductible expense and Where do we enter it?

Forum|Forum|10 months ago
July 23, 2025
2 replies
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Residential home. Roof installed June 2024. Paid additional money out-of-pocket for energy efficiency. Insurance company paid the bulk.

TurboTax Deluxe Online

Opus 17

Level 15

Generally, no. Home improvements add to your cost basis and may reduce your capital gains when you sell, so keep track. But they are not tax deductible.

Insulation systems designed to reduce heat gain or loss are eligible for a tax credit of up to 30% on the materials only (not including labor) with a maximum credit of $1200. An efficient roof does not count (heat reflecting granules, etc.). But if you had additional insulation installed in the attic under the roof deck, you can claim the credit on the cost of the insulating materials. If your bill does not show the cost of materials vs labor, you can make a reasonable allocation, but you might have to prove it if audited.

Mike9241

Level 15

why did you get an insurance payment? why was the roof replaced?

generally, a roof replaced due to deterioration on a personal residence is not deductible but what you paid out of pocket adds to its tax basis.

a roof destroyed by a disaster in a federally declared disaster area might qualify for a casualty loss deduction.

this deduction would likely be the decline in fair value of the home before and after the disaster reduced by any insurance recovery

Mike9241

rebeccaspann2011Author

Level 2

Thank you for your response. The roof was replaced due to a declared disaster. Straight line, windstorm damage and hail damage.
the insurance company paid for a new roof, but not one that would withstand another hail storm. we purchased a higher grade roof . The difference in cost came out of pocket.
The homeowners insurance company actually increased our renewal fee rather than reduced it. No tax deduction or lower property value was given either.