Is a new roof a repair or an improvement?
Short answer. For tax purposes a new roof is generally a capital improvement, not a repair, because replacing a major building component restores the property. On your own home that means no deduction, but the cost adds to your basis; on a residential rental, a new roof is generally depreciated over 27.5 years instead of deducted all at once.
How the IRS draws the line
Under the IRS tangible property rules, spending is an improvement if it betters the property, restores it, or adapts it to a new use. Replacing an entire roof restores a major component of the building, so it is capitalized. Fixing a leak, replacing a few shingles or swapping a pipe boot keeps the roof in ordinary working condition, which is a repair.
Your own home
- Neither repairs nor improvements are deductible on a personal residence.
- An improvement adds to your cost basis. When you sell, a higher basis reduces your gain, which matters if the gain exceeds the home sale exclusion of $250,000 for single filers or $500,000 for married couples filing jointly.
- If insurance paid for the roof after a storm, the math is different, because reimbursed costs generally do not add to basis the same way.
A rental property
- Repairs are generally deductible in the year you pay them.
- A new roof on residential rental property is generally depreciated over 27.5 years.
- Some small landlords qualify for IRS safe harbors that allow deducting certain costs; a preparer can tell you if one fits.
Keep the paperwork
Save the contract, final invoice, proof of payment and photos with your house records. Partial replacements, like one slope after a storm, can fall in a gray area, so documentation of what was replaced and why helps. This is general information, not tax advice. For the project side, see roof replacement cost in Georgia and roofing warranties explained.