How Much To Deduct From Home Offer For New Roof

How much below asking price should you offer on a house.

How much to deduct from home offer for new roof.

Dear real estate adviser i m buying my first house at a good price and just had the inspection. It could be as low as 15 for a roof near the end of its service life. However home improvement costs can increase the basis of your property. Installing a new roof is considered a home improve and home improvement costs are not deductible.

President of town and country roofing ralph harris suggests homeowners contact their insurance providers and bargain for a lower deductible. Unfortunately you cannot deduct the cost of a new roof. This means you will get a percentage of the replacement cost based on the roof s material and age. If your house loses value because a windstorm ripped away your roof you can claim the loss as a tax deduction.

This means that you deduct the cost over several years anywhere from three to 27 5 years. You can t claim any casualty losses your insurer reimburses you for. For most people the state and local income taxes paid usually gives them the higher deduction but for others the sales tax deduction may give them a greater benefit for example. Although you can t deduct home improvements it is possible to depreciate them.

Roof discounts may range from 5 to 35. You claim the loss rather than the replacement cost but if it costs you 15 000 to get a new roof that s evidence of how much value the house lost. Replacement coverage provides for returning the roof to a brand new condition when an event that is covered by the insurance policy takes place. You may qualify for a tax credit of up to 500 if your roof meets certain energy requirements.

Residents of states that don t collect state and local income tax alaska florida nevada south dakota texas washington and wyoming. Here s a guide to figure that out. Home improvements increase the basis of the property. For most homeowners the basis for your home is the price you paid for the home for or the cost to build your home.

For example if you installed a new chain link fence 15 years ago and then replaced it with a redwood fence the cost of the old fence is no longer part of your home s basis. The average roof costs 7 484 your discount would save you between 54 and 380 annually which means it would take between 20 and well a lot of years. All was well except for a bad roof that s 20 plus years old and needs repair.