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Updated over 6 years ago,
Tax implications of roof replacement due to hail damage
I'm trying to figure out how I should report the roof replacement in one of my rental homes due to hail damage on Schedule E. The rental home was purchased in May 2017 and the previous roof had half of its usage life left according to inspection report. It had to be completely replaced due to hail damage. The insurance company paid for the replacement and I had to pay out of pocket of $1000 deductible. Can I deduct the $1000 as an expense? How do I depreciate the new roof? Does the half usage life of the original roof factor in the depreciation of the new roof? Any advice will be appreciated!