Rental property - roof replacement

[Sumit B.]

Hello everyone,

I have question regarding roof replacement if covered by insurance, is it eligible for depreciation over 27.5 years?

My property went in contract as rental in Nov 2021, The roof was replaced in Nov-Dec 2021. The total cost was around $11,800. My insurance covered the $10k however I had to pay the remaining balance.

When I did my taxes for 2022, I asked my CPA if the amount paid by insurance ($10k) can be depreciated as an capital expense. He said unfortunately since it was covered by insurance I cannot claim it. However I can only claim $1800 that I paid out of pocket.

Just wanted to get your thoughts.

Thank you!!