Can You Deduct Radon and Mold Remediation Costs on Your Taxes?

Eligibility Overview

Only a narrow set of circumstances allows radon and mold remediation costs to be deducted on federal taxes. Generally, the IRS treats these expenses as personal, non‑business costs, so they are not deductible unless they qualify under specific medical or casualty provisions.

Medical Expense Deduction Path

If the remediation is directly linked to a diagnosed medical condition—such as asthma or allergies—caused by radon or mold, the cost may be considered a qualified medical expense. The expense must be incurred to treat or prevent a disease, and it must exceed 7.5% of your adjusted gross income (AGI) for the year you claim it. Keep detailed receipts, medical records, and a professional assessment that connects the remediation to your health condition.

Casualty and Theft Loss Deduction

In rare cases, if radon or mold damage is the result of a covered casualty event, such as a fire or flood, the remediation cost can be deducted as a casualty loss. The loss must be documented, and the deduction is limited to the amount by which the loss exceeds $100 plus 10% of AGI. This pathway is uncommon because most radon and mold problems are chronic, not event‑based.

Home Improvement and Capitalization

When radon mitigation or mold remediation is part of a larger home improvement that increases the property's value, the cost is typically capitalized and added to the basis of the home. The increased basis reduces capital gains tax when you sell, but it does not provide an immediate deduction.

State and Local Incentives

Several states offer rebates, tax credits, or property tax abatements for radon or mold remediation. These programs vary widely: California provides a 20% tax credit up to $3,000 for radon mitigation, while New York offers a property tax exemption for qualifying mold remediation. Check your state's Department of Taxation website for current eligibility criteria.

Practical Tips for Claiming

• Maintain comprehensive documentation: invoices, contractor certifications, and medical evaluations. • Consult a tax professional familiar with medical and casualty deductions. • Verify state‑specific programs before filing. • Use the IRS Schedule A (Form 1040) for medical expenses or Schedule C for casualty losses if applicable.