Whether you are a landlord or a homeowner, there may be a point in your life where you have to tackle mold, and with tackling this mold, you will need mold remediation. However, getting mold removed from your home can be agonizingly pricey, so it is advisable to wonder if it is tax-deductible.
Mold remediation qualifies as a repair that needs to be done to protect the investment of your home. You will incur costs of removing mold from your home, or building, and these costs have the potential to be very high, depending on the size and scale of the infection. You may have to have a quarter wall, half wall, or even a whole wall removed, sometimes even more. Then you must consider the costs of the chemical and personal protection equipment that is necessary in order to do the job safely.
However, the costs of this process are tax-deductible as a normal and necessary expense. A procedure or action must meet requirements before something can be deducted as a business expense, it must be ordinary and necessary. In short, the process must be one that is not uncommon, and it must also be necessary in order to retain the value of your property. Removing mold from a building fits both of these requirements.
A renovation that is to increase the value of a home, or another building cannot be counted as this. However, the removal of mold is necessary due to the health risks of the workers and anyone else inside the affected area, and this is something that will affect the flow of cash into the business.
The remediation and removal of mold does not add value to a property, and therefore it is fine to count it as tax-deductible at the end of a year, even if it is something like a personal home. However, if the mold remediation is a part of a renovation plan that includes the entire property then the cost is required to be capitalized instead of deducted from your taxes at the end of the year.
Therefore, summarized, if you are simply having mold removed from your property, business or home then it is tax-deductible. If you are having it removed as part of a greater renovation plan then it is not tax-deductible.