Hello! I want to turn out first home to a rental property but needs a new roof. For tax purposes later, can we claim the roof? Do we need to be making cashflow in the property to claim the roof under depreciation each year?
Your answer is best found from an internet search from a reliable tax resource than on BP; I did it for you, here it is:
"That's because the IRS treats a new roof as an asset on its own, meaning it is prone to deterioration or obsolescence. These things lead to depreciation of assets, meaning you must expense your new roof on a rental property as a depreciation expense and not a regular rental business expense." (End).
Koo-do's to Patricia for doing your work for you! lol
Remember, in most states ... most ins co's only pay to replace the roof due to hail and/or wind damage. NOT for longevity, old age, maintenance... thus most people make a claim for roof replacement after a severe hail storm. Wind damage is harder, as there has to be a lot of "wind damage" for them to replace a roof due to that. Small repairs (minor damage or small leaks) are usually out of our own pocket... because they costs much less than the deductible that is set up.
If you have specific "roof" questions feel free to send a message. Happy to help as I/we can. (with J's Roofing - Richardson, TX)