How To Figure Your Depriciated Value Of Your Roof

As such the cost of the new roof would be depreciated over the estimated life of the roof as determined by the irs depreciation schedules.

How to figure your depriciated value of your roof.

The information provided herein was obtained and averaged from a variety of sources including but not limited to. For instance a 10 year old roof covered in 20 year shingles will be depreciated by at least 50 if it s in excellent shape. Calculating depreciation begins with two factors. This means the roof depreciates 545 46 every year.

When a claims adjuster looks at a roof he will consider the condition of the roof as well as its age. Under normal conditions if the replacement cost of a roof is 15 000 the standard lifetime of a roof is 15 years and the age at loss is 10 years old the depreciated value would be 5 000. Plus certain things are exempt from this tax perk. Manufacturers repairers builders and home inspector associations and insurers.

For example if you ve owned a rental property for 10 years before you installed a new roof you can depreciate the roof over 27 5 years even though you have 17 years of depreciation left on the property. Calculating depreciation based on age is straightforward. The roof depreciates in value 5 for every year or 25 in this case. Let s say your roof is supposed to last 20 years and it s 5 years old when damaged.

For example if the new roof costs 15 000 divide that figure by 27 5.