In most cases, no. In order to qualify for a deduction, the damage must be from a federally declared disaster zone in a designated area declared by the President. If the damage did not occur due to a federally declared disaster, then it is not deductible. However, you would be able to add the amount to your cost basis of your home in case you ever sell your home. This will help to lower any potential taxable gain on the sale of the home.
Yes, you should keep copies of your bills, whether it is deductible this year or later added to the cost basis of your home. You would need to deduct any insurance payouts from the total of the damage whether it is for the disaster or cost basis.
If you were in a federally declared disaster zone, then yes, you would be able to deduct the damage to your roof. The deduction is limited. To calculate the deduction you must first subtract $100 from the total amount and then only the amount above 10% of your AGI is deductible. So if your Adjusted Gross Income is $50,000, only the amount above $5,000 is deductible.
Then you would take the following steps to enter your deductibles.
- Federal
- Deductions and Credits
- Show More next to Other Deductions
- Start next to Casualties and Thefts
- Enter the Description, Date and Property Type
- When you select Personal property, you will need to select the special tax treatment.
- When you click next you will need to enter the FEMA disaster code.
- Continue through the entries
If this loss is a qualified disaster loss, special rules apply, then you can claim this whether or not you itemize. The 10% limit does not apply. There is a $500 deduction from the loss.
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