Hi,
We purchased a new house during Jan-2018 and couple of months ago we did a solar installation. Since our roof was old our contractor suggested to replace the roof first. So we re-roofed and then installed the solar. Both roofing and solar are done by the same contractor (2 contracts). In our solar contract they did mention that we need to re-roof for the solar installation and mentioned the roofing cost and contract details.

Fyi:
Roofing cost: $12141
Solar cost: $11365

I was told I can deduct both roofing and solar cost. Kindly let me know how much of this can be deducted?

Thanks.

"Since our roof was old".

Being old doesn't count. If the contractor can tell you the roof was storm damaged that is different but then your HO insurance would cover. Roofs are like old rugs, you replace them. I spent 30+ years with commercial insurers. We would only replace a roof after good inspection indicated a covered peril. Old age is not a covered peril.

I agree with ma0641 that the "old" roof does NOT qualify for an insurance claim because it is old. That cost must be born by you.

I assume you intend to claim the 30% tax credit using Form 5695 (Residential Energy Credit). Initially, I thought claiming the roof replacement as part of the cost associated with the installation of the solar panels was a stretch at best.

However, below my name below is an extract from the 2017 instructions for IRS Form 5695. Note the part that is bold black. That pretty much confirms what you were told, i.e. you CAN claim the cost of the roof replacement as part of solar panel installation, especially if the installation contract specifically state that you needed to replace the roof in order to install the solar panels.

In my considered opinion, you CAN claim both the solar panels AND the re-roofing costs for the 30% credit.

ATG

Qualified solar electric property costs.
Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. The home doesn't have to be your main home.