Roof replacement: Insurance deductions and taxation

2 Replies

I am getting my roof replaced on a rental property.  The cost is divided as follows: 

  • Insurance is covering portion of it
  • I am covering portion of it (as my insurance does not cover full replacement cost).  I only get the non-depreciated cost of replacement
  • I am also paying insurance deductible

Are all or some of my out of pocket spending, tax considered as repair expenses or capital improvement?

Rob, I realize new roof is capital improvement.  The costs are broken down as outlined in the original post.  The roof replacement cost that I incur is only the cost of depreciation which may require a different tax handling.  Or it may not. Then there is the insurance deductible expense.  All these are outlined in the original question.