What You Need to Know About Roofs and Tax Deductions

Maplewood, Minnesota, is full of possibilities for homeowners looking to install a new roof or make vital repairs to an existing one. For instance, homeowners can benefit from special local tax deductions when doing so. This post provides an overview of what you need to know about roofs and potential tax deductions that can be claimed when tackling any necessary exterior projects.

• Installing a new roof – Tax deductions may apply when replacing an existing structure with approved upgrades, provided they meet local permits and code requirements. Energy efficiency improvements (as allowed by the appropriate state laws) may count toward available credits, which can reduce federal income tax liabilities. It can also lead to other possible savings, including capital gains exclusions if you are going to sell your home within five years after the installation.

• Roof repairs – Repairs for minor damage are not eligible for any major tax deductions unless stipulated otherwise within certain contracts from your home remodeling contractor in Minneapolis, MN.

How to Claim Roof Tax Deductions

If you are considering claiming a tax deduction for your roof installation, replacement or repair projects in the Maplewood area, here is what you need to know:

Calculating Your Deduction

The amount of money deductible on home improvement expenses varies depending on individual circumstances. Review all documents provided by the general construction company in Minneapolis, MN, to know exactly how much is eligible for a tax deduction before filing taxes. Calculate your deduction accurately by including all expenses related to labor and materials used when replacing or installing a new roof. Furthermore, make a note of any incentives gained from other sources (i.e., energy efficiency credits) that could be applied towards the overall cost.

Gather Necessary Documents

Before attempting to claim a deduction from your tax return, make sure that you keep accurate records detailing the supplies used (if any) and the total labor charges incurred for your project. Collect receipts, contracts and permits about the work completed as part of your project. This paperwork will help substantiate your claims for tax deductions.

Fill Out the Necessary Forms

Once you have calculated your deduction and gathered all your paperwork, it’s time to complete the forms. Depending on where you live, different tax forms are required for residential improvements in order to claim a deduction. Consult with an accountant or tax expert if you’re unsure how to complete such documents correctly. This will help avoid unnecessary confusion and errors.

Submit Your Claim

After you fill out the forms and gather all documentation, it’s time to submit your claim. Your accountant should be able to help you file the necessary documents or advise you on where to send them.

Takeaway

Replacing or installing a new roof on a home in Maplewood, MN, can be beneficial not only to your property value but also to your tax return. If you’re considering replacing or repairing your roof, Timberland Exteriors has you covered! We also provide exterior home remodeling services in Minneapolis, MN, and surrounding areas. For more information, you can send us a message or call our office in Maplewood at 651-439-1760 or Detroit Lakes at 218-849-6675.