A residential roof replacement is not tax-deductible, because the federal government considers it a home improvement, which is not a tax-deductible expense. However, installing a new roof on a commercial or rental property is eligible for a tax deduction. Unfortunately, you can't deduct the cost of a new roof. Installing a new roof is considered a home improvement and home improvement costs are not deductible.
Not only can you spend your entire roof in the year you buy it, but you can also spend more than the cost of the roof. However, tax law changes, which allow homeowners to spend a new commercial roof in a single year, could make installing a new commercial roof less of a financial burden for businesses. Now, changes to Section 179 of the IRS tax code allow a company to spend a completely new roof in the year it purchased the roof. In addition, the depreciation expense of the new roof should be treated separately from the depreciation expense of the building itself, since the new roof is recognized as an asset independent of the existing building.