Mold Remediation as medical deduction

[cleverhant@gmail.com]

Is there anyone who has used the costs of mold remediation as a medical expense? Any advice? I have a client who has sustained a tremendous amount of damage to her home through mold and also has a brain tumor. I cannot say this is specific cause and effect but would appreciate any knowledgeable input. thank you for your effort.

[taxea]

I would think her doctor would have to attribute the tumor to the mold in a medical report.

[mastertaxguy]

Mold remediation

See TTB pp. 4-5.
This would appear to be a capital expense item (at least I would be tempted to treat it as such) and thus added to the basis of the home.
Such remediation procedure may actually increase the value of the home further limiting any possible deductible medical expense.
Perhaps the taxpayer's home owners insurance policy might provide some coverage (unlikely but worth a look).

[FEDUKE404]

No tax or insurance relief seen

I think you're on pretty thin ice to pursue either as a medical deduction or as an insurance claim.

What if you had to replace "dusty" carpets with hardwood floors? Move to new house in AZ because of humidity? Cut down pine trees because of all the pollen? Buy a golden retriever "comfort dog" to ease anxiety?

Would medical insurance cover any such? If not, then in most instances, neither would the IRS.

As for an insurance claim, the "damage" would likely be viewed as a deteriorative event occurring over time (e.g. not "sudden and catastrophic") and therefore not eligible for consideration.

But. . .you and your client make the final determination.

FE

[TAXNJ]

In addition to ......

In addition to information from reply posts from taxea and FEDUKE404, consider (after getting client’s consent) working with client’s attorney about insurance claim and Doctor’s diagnosis report. You are an after the fact reporter given the facts by those in authority to get such facts.

[Burke]

Have the same issue with a client. She had been ill for months and saw a specialist at UVA. Lab reports confirmed exposure to mold within 3 days prior to her blood work, and it was subsequently discovered in all the walls of her 3-year old home as a direct result of that diagnosis. Major renovations and remediation ensued by professionals and for weeks she had to live elsewhere. It was determined that the likely cause was insufficient drain-off from the gutters directing rainfall away from the home. If the construction merely restores the home to its previous state, I fail to see where it could be considered a capital improvement. HO policies now routinely exclude mold as a covered occurrence, unless it is due to a catastrophic event rather than over time, or the state does not allow it to be excluded.