Is a new roof considered a repair?

Taxes

The IRS generally treats replacing a whole roof as an improvement, because it restores a major part of the building, and small fixes as repairs. On a home you live in, neither is deductible, but an improvement adds to your cost basis, which can reduce taxable gain when you sell. On a rental, repairs are usually deducted in the year paid, while a new roof is depreciated over time. A tax professional can confirm how it applies to you.

Insurance

A policy pays to repair or replace damaged property. When storm damage runs across the roof, or the damaged shingles cannot be matched, the covered repair can turn out to be a full replacement. Wear and tear is not covered either way.

Permits

Many Georgia cities and counties require a permit for a reroof but not for small repairs, and the threshold varies by jurisdiction. Check with your local building department; see roofing permits in Georgia.

HOAs and home sales

HOAs often require approval for a replacement because color and style change, but not for a repair with matching shingles; see HOA roof approval. Seller disclosures typically ask about repairs and replacements separately, and a buyer's inspector will estimate the roof's age either way.

Warranties

A replacement starts new manufacturer and workmanship warranties. A repair usually carries only a short guarantee from the contractor on that work and does not extend the original shingle warranty. More in roofing warranties explained.