Got a new roof installed this year (2024) for a home that I am renting out to a tenant Cost of the new roof was $12,600 I am in the "Assets" section in Turbotax in "Rental Properties and Royalties (Sch E)" for my houseI click the button saying "Add expense or asset"I select "Improvements, furnishings, and other assets" On the fourth page of "Improvements, furnishings, and other assets" it says:------------------------------------ The safe harbor election for small taxpayers lets you deduct improvements as expenses this year instead of being depreciated over many years.You can do this if:Your gross receipts, including all your other income, are $10,000,000 or less.The unadjusted basis (typically, the original cost) of your building was $1,000,000 or less.The cost of all repairs, maintenance and improvements is less than or equal to $10,000 or 2% of the unadjusted basis of your building, whichever is lower.Do all three of these apply?*Yes*No ------------------------------------ Since my roof cost was $12,600 I have to pick "No"? If this is the case is there any other way to get a deduction in my taxes for the new roof I had installed this year (2024)?

N

nbgoku

Question

New roof deduction question

Forum|Forum|1 year ago
December 13, 2024
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Got a new roof installed this year (2024) for a home that I am renting out to a tenant

Cost of the new roof was $12,600

I am in the "Assets" section in Turbotax in "Rental Properties and Royalties (Sch E)" for my house

I click the button saying "Add expense or asset"

I select "Improvements, furnishings, and other assets"

On the fourth page of "Improvements, furnishings, and other assets" it says:

------------------------------------

The safe harbor election for small taxpayers lets you deduct improvements as expenses this year instead of being depreciated over many years.

You can do this if:

Your gross receipts, including all your other income, are $10,000,000 or less.
The unadjusted basis (typically, the original cost) of your building was $1,000,000 or less.
The cost of all repairs, maintenance and improvements is less than or equal to $10,000 or 2% of the unadjusted basis of your building, whichever is lower.

Do all three of these apply?

*Yes
*No

------------------------------------

Since my roof cost was $12,600 I have to pick "No"?

If this is the case is there any other way to get a deduction in my taxes for the new roof I had installed this year (2024)?

TurboTax Free Edition Online

O

Opus 17

You don't qualify for the safe harbor that would allow you to expense the entire cost at once, so you have to add it as an asset and depreciate it over its useful life. Residential rental real estate is depreciated over 27.5 years, but a new roof might have a shorter class life, Turbotax should help with that if you continue forward.

M-MTax

A roof would have the same class life as the underlying property....27.5 years.

A

AmeliesUncle

I'll just add there are some circumstances that it could be a "repair".

It is unlikely they replaced the entire "roof"; most likely they merely re-shingled the roof. In SOME circumstances, that might be a repair. It can be complicated to determine that, but the link below has some insight into the matter.

https://www.thetaxadviser.com/newsletters/2017/jun/expensing-roofing-costs.html