I had an insurance claim for my roof in 2018, but didn't get it repaired until 2019, should I have claimed the loss in 2018 or 2019? Also, can I use my insurance deductible as a tax deduction? FYI, I still have not filed my 2018 taxes. Thanks.
Unless the roof damage was a result of a natural disaster, this type of damage is no longer deductible. (This may be different if you're referring to damage to a rental property). If this is your personal residence, you won't report the loss at all on either 2018 or 2019 tax return. The TurboTax FAQ I'm linking below explains more.
*Please click the thumbs-up icon if this response was helpful.
**Please click "Mark As Best Answer" if your question has been resolved. Thank you.
Thank you for responding. Just a quick question, the reason for the claim in 2018, the damage was caused by hail, but due to issues, I wasn't able to replace the roof until later. I was FEMA impacted (natural disaster - tornadoes and flooding) which caused me to have to get the roof replaced at that time in 2019, if that has any impact on the situation.
So, if I'm understanding correctly, you used the insurance payment you received for your 2018 hail damage to repair the roof in 2019, after a natural disaster occurred.
Regardless, only the amount not covered by your insurance would be deductible. I'm doubtful that the IRS would take issue with you using your insurance deductible that you paid in 2019 as a deduction for the 2019 natural disaster. Technically, you're talking about two different events, which is what makes it so confusing.
If you ever were questioned by the IRS, you'd need to show evidence of the claim and the repair work. Obviously, the IRS could disallow the claim if you were ever audited (not likely). Keep in mind, however, that your insurance deductible would need to be an itemized deduction on Schedule A. If you're not itemizing your deductions, as many taxpayers no longer do, the entire issue is a moot point.