New Roof

[andreacheo]

Insurance paid for the new roof 22000.00, I paid 1000.00 deductible. What amount should I enter when claiming the energy tax credit?

[LeonardS · Accepted solution]

You can not claim the insurance payment, $22,000 for the energy tax credit.  You can only claim your deductable amount of $1,000 you paid towards your energy credit.

[Dant]

Not all roofing material will qualify for the tax credit.  Is there a list of manufacturers and roofing products that qualify?

[Vanessa A]

No, there is not a list of manufacturers that qualify.  If the material is listed as Energy Efficient, whether it is metal or asphalt, it will qualify. 

Residential Energy Credit

[vldrm]

The tax credit is based on the cost of materials and not anything else like installation. How does that work if you don't have an itemized breakdown of the roof replacement costs. e.g. if the total replacement cost was $20,000 and the insurance deductible was $1000, can you claim the full $1000 for the tax credit, or are you supposed to determine what percentage of the total cost was for materials and apply that to the insurance deductible?

e.g. Total cost = $20,000, of which materials = $5,000 = 25%. So claim 25% of $1000 = $250?

[DaveF1006]

It depends on how you record the information in your return. Here is the correct sequence of steps.

1. Go to federal>deductions and credits
2. Your home>home energy credits
3. Answer the preliminary questions
4. When you get to a screen that says Tell us How Much you Paid for energy-Savings Improvements enter the cost of the materials for the roof under Metal or Asphalt Roof. You will not enter the costs of assembly, preparation, or installation of the roof, only the materials.  
5. For the insurance reimbursement, determine the pro-rata share of the cost materials in relationship to the other costs and deduct that portion from the cost since you were reimbursed for it.
6. Once done, you will be given a credit of 10 percent of the cost of qualifying materials, up to a maximum of $500 credit.
7. Just remember, you will enter the amount you paid for a metal roof with appropriate pigmented coatings, or asphalt roof with appropriate cooling granules specifically designed to reduce the heat loss or gain of your home. Roof coatings are not eligible.

@vldrm

[sindealoo]

my insurance did not pay due to poor workmanship, I used inheritance, to pay cash, also had to put new septic in,  is any of this deductable?

[sindealoo]

it now has a 10 year warranty on workmanship

[sindealoo]

are there any home improvements that I can take as a tax credit because I used most all of my inheritance

[sindealoo]

It was NOT covered by insurance, it was denied, so I had to pay cash using my inheritance

[NCperson]

@sindealoo they are capital improvements and add the the cost basis of your home. it will reduce your profit when you eventually sell the house. You can not deduct these costs on this year's tax return.