Deducting Mold Remediation And Water Damage Restoration From Your Taxes

Fortunately, if you are a homeowner or a business owner and you need to have mold removed from your property, the fact is that you can probably deduct this from your taxes at the end of the year. The remediation is recognized as a repair that you have to do to safeguard your home, because your home is considered an investment.

Depending on the size of the contamination, the remediation costs can be fairly large, especially if you choose to hire a professional remediation business instead of doing a lot of it yourself. If you know what you are doing and are careful enough, a lot of the mold remediation can be done by you, but hiring a professional is usually the best thing to do.

Sometimes an entire wall or perhaps even more has to be taken out due to a mold infestation on a property and then there is the cost of the professional help that you will probably need to do this on top of the cost of protection equipment and chemicals.

What the IRS has decided is that the cost of the remediation of the mold in your home is a necessary expense. To be counted as a business expense, an expense must be both necessary and ordinary, no matter how great the cost may be.

There are guidelines to this tax deduction, however. If the mold removal and remediation is part of a larger renovation of the household, then you cannot count it as tax deductible at the end of the year; you must capitalize on it. The removal of the mold cannot increase the financial value of the home or property in any way.

Hiring a professional mold remediation company to do the work for you is usually the best thing to do and whatever they bill you at the end of the work is what you will count as deductible. Building materials that you need to buy after the remediation is completed are deductible as well, since you will need these items to finish up the repairs.

Relocation expenses could possibly also be deductible if your family had to relocate while the remediation was taking place, since the relocation is a direct result of the mold removal. Talk to the person who prepares your taxes every year and ask if this is an option.



Jim Corkern is a writer and promoter of quality
Mold Remediation and
water damage restoration companies across the united states.