Submitted By: someone
Answered: March 17, 2022 2:50 am

Can I deduct the cost of installing a new roof on my home?

Capital improvements to a principal residence are not deductible but instead are added to the cost basis of the home. This reduces the capital gain that results when the home is sold. The cost of the new roof may qualify for the residential energy credit. In general, traditional roofing materials and structural components don’t qualify for the credit. But some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support, and such items may qualify for the credit.

Tax Glossary

Imputed interest

Interest deemed earned on seller-financed sales or low-interest loans, where the parties’ stated interest rate is below the applicable IRS federal rate.

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