More Mold Tax Tips

Mold making you sick? You might be able to turn those aches and allergies into savings.

Some time ago, I discussed how mold removal and property repair could be considered a tax write-off business expense since it protects the value of an investment. But did you know that you can also write-off mold remediation as a medical expense?

This tip might come in handy if you are renting or otherwise do not own your mold-infested living space. How I understand it is that if you are diagnosed with a mold related illness, then removal of the mold would be necessary to relieve the diagnosed condition. This is similar to lowering cabinets and light switches and building ramps to accommodate someone in a wheelchair. The primary purpose of these costs is to improve a medical condition; therefore, they are considered medical expenses.

Of course, you can’t just claim that mold is making you sick yourself. You will need a written statement from your doctor who agrees the mold must be removed as a medical necessity for your condition.

But unlike mold as a business expense, it seems you cannot write off repairs as a part of the medical expense. For example, if mold is covering your drywall, you can write off the expense of removing the contaminated material, but not any replacement material or repairs.

If your mold remediation does somehow result in an increased value to your property, then it looks like you only get to write off the difference. For example, if you spent $1000 to replace moldy drywall and it added $300 to your property value – then you could only write off $700.

But don’t just take my word for it – I’m not a tax accountant. You should, however, bring up these suggestions to your tax accountant and your doctor if you think mold is making you sick. You’re already suffering from mold, at least you can suffer through your taxes a little less.

Tagged as: allergies, business expense, medical condition, medical expense, medical expenses, mold, mold remediation, Mold Removal, tax accountant