Replacing a residential roof is not tax-deductible, as the federal government considers it a home improvement, which is not an eligible expense. However, installing a new roof on a commercial or rental property can be deducted from taxes. Unfortunately, you cannot deduct the cost of a new roof from your taxes. Home improvement costs are not deductible. Not only can you spend the entire cost of the roof in the year you buy it, but you can also spend more than the cost of the roof.
Recent changes to Section 179 of the IRS tax code allow businesses to spend a completely new roof in the year it was purchased. Additionally, the depreciation expense of the new roof should be treated separately from the depreciation expense of the building itself, as the new roof is recognized as an asset independent from the existing building.
