If you’re like the majority of Canadians, you are always looking for a way to help your bottom line when tax season comes around. And, if you’re a homeowner, you may also know that there are certain repairs and expenses that can be claimed on your tax return. You may be wondering, however, if a roof repair can be counted among these things.
The answer to this inquiry is “it depends”. In short, while many home repairs aren’t tax-deductible, many home improvements are. In this article, we will go offer this differentiation in more detail, and will hopefully provide more clarity to anyone who is in the market for home roof repairs.
Are Home Repairs Tax Deductible?
No — if you are performing repairs on a home that you use for personal use, the money you spend is not tax-deductible. However, in some cases, a home renovation may be eligible for a tax deduction.
What Are the Differences Between a Home Repair and Home Renovation?
Now that we have established that there is a difference between home repairs and home improvements, it is useful to learn how to determine whether you are doing a home repair or home renovation.
The main difference to keep in mind is this: while a home repair is something that is performed to maintain the function of your home, a renovation is performed to improve the function of your home. In other words, a home repair keeps your home the same, while a renovation makes your home better.
Common Home Repairs Include:
- Fixing a leak
- Fixing a hole in the wall
- Fixing broken windows
- Repainting the exterior of your home
- Fixing malfunctioning gutters
Common Home Renovations Include:
- A kitchen remodel
- A bathroom remodel
- Adding a deck
- A home extension
Although most home repairs will not be tax-deductible, there are two exceptions to this. The first is that you may be able to claim them if you operate a home office and file taxes as a small business. The second is if you rent out a portion of your home.
If You Operate a Home Office
If you operate a business out of all or the part of your home, then you can deduct your home repair costs. In order to qualify, you may be required to prove that you operate a legitimate business and that you use a certain part of your home exclusively for the purpose of the business.
For example, if you have a home office that you operate out of, and you need to repair a window on that office, you will be able to deduct 100% of this repair. However, if you need to repair the windows of your entire house, you will only be able to deduct the portion that was used in your home office.
For a roof, of course, determining which percentage that you can deduct may be more complicated, as it’s not likely that you will only need a roof repair on the portion of your house that is used for an office. So, you will most likely be left with determining which percentage of your home that you can deduct the roof repair from.
If You Rent Out a Portion of Your Home
If you rent out a portion of your home, it may also be possible for you to deduct your roof repair. This is because it can be deducted as a rental expense. The deduction will only be applied to the portion of the home that you rent out.
Are Roof Repairs Home Repairs or Home Improvements?
As the name would suggest, roof repairs are home repairs, not home improvements. So, as such, it is not likely that you can claim them on your taxes.
However, there are still financial returns that can be gained from performing roof repair. Home improvements will increase the property value of your house which will help increase the return on your property.
Roof Repairs in Metro Vancouver
If you’re in need of a roof repair in Vancouver, Surrey, Burnaby, or Coquitlam, then Canuck Roofing is here for you. We offer a brand promise that is built on the pillars of quality, transparency, and reliability, and are proud to be trusted by thousands of customers. We would love to see how we can make improvements to your roof.