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pa-harris
New Member

Where can i take off for my metal roof

 
3 Replies
DS30
New Member

Where can i take off for my metal roof

Unfortunately there is no deduction for capital improvements to your personal residence.

However, you will be able to increase the cost basis in your home by the amount of these capital improvements.

There is also a credit and additional itemized deduction that might be available to you for these capital improvements:

Your home improvements may qualify you for a nonbusiness energy tax credit (depending on your specific tax situation)

Please refer to the energy tax credit for more information.

To see if you are eligible for a your home energy tax credit in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Your Home”
  5. Select - Home energy Credit and start. Let TurboTax guide you on entering this information.

Also you may be able to claim interest as an itemized deduction if you financed this home improvement.

A qualifying loan is one that is taken out to add "capital improvements" to your home, meaning the improvement must increase your home's value, adapt it to new uses, or extend its life. Examples of capital improvements are: adding a third bedroom, adding a garage, installing insulation, landscaping and more.

Include this home improvement interest expense under the same section as you would Home Mortgage Interest.

To enter your Mortgage Interest in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Your Home”
  5. Choose "show more", then Mortgage Interest, Refinancing and Insurance

It is OK to show your home improvement interest expense as mortgage interest under the 1098 section of Schedule A. Just keep a copy of your loan information with your tax records, so if you are contacted by the IRS, you will just need to provide an explanation of your situation (that your additional mortgage interest is related to a home improvement loan and provide the IRS with the details of this loan).

Additionally, if you are claiming a sales tax deduction in your home state, you can include the sales tax paid on building materials as a major purchase under this section.

A few things to remember about this major purchase deduction, you will only get this extra deduction if:

  • The sales tax rate on this major purchase needs to be the less than or same rate as your state's general sales tax rate.
  • You are taking the state's sales tax deduction as opposed to the state's income tax deduction.
  • You itemize on your return.

To enter this transaction in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "Sales Tax Deduction" in the search bar then select "jump to Sales Tax Deduction". TurboTax will guide you in entering this information.

To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
  5. Choose "show more", then Sales Tax (start/update/revisit)
  6. Choose - continue to sales tax and choose "Easy Guide"
  7. If your state sales tax information is already entered you will need to edit it to enter your major purchases information.
  8. On the screen that says Major Purchase - select "yes"
  9. Enter your building material information and sales tax here on the next screen.


195523rDm
Returning Member

Where can i take off for my metal roof

this is for a rental property I mean the metal roof

VictoriaD75
Expert Alumni

Where can i take off for my metal roof

Add the roof as an asset on the rental property. As it is an integral part of the structure, it must be depreciated using the same timeline. Improvements are depreciated using the straight-line method, which means that you must deduct the same amount every year over the useful life of the roof. The IRS designates a useful life of 27.5 years, so, divide the total cost of the roof by 27.5 to reach the amount you are able to deduct each year.

 

Publication 527 Residential Rental Property

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