Are bathroom remodels tax deductible? Just fixed mold damage in my new home

Thanks for the quick response! So basically nothing I can write off this year, but it might help reduce taxes if I sell the house for a profit someday? That's a bit disappointing. What about the mold specifically - isn't that a health hazard that might qualify differently than just regular renovations?

Even though mold remediation addresses a health hazard, it's still considered a personal expense rather than a tax-deductible item. The IRS doesn't have special provisions for health-related home repairs unless you're claiming them as medical expenses - which has very specific requirements and high thresholds to qualify. For the future tax benefit, yes - keep detailed records of all your home improvements. When you eventually sell, these costs get added to your home's purchase price (your "basis") which can reduce your taxable profit. This includes not just the bathroom renovation but any substantial improvements you make over the years.

How does this service actually work? Do real tax pros review your documents or is it all automated? I've got receipts for some major electrical work and wondering if it's worth trying.

Sounds too good to be true honestly. I've always been told home repairs are never deductible. Are you sure they weren't just telling you to track it for your home's basis rather than actually deducting it now?

The service uses a combination of AI and tax professionals. You upload your documents, their system does the initial analysis, and then tax experts review everything to ensure accuracy. It's much more thorough than typical automated services but less expensive than hiring a dedicated CPA for a one-off question. Their primary value was helping me understand what could be recorded as an increase to my home's basis versus what might qualify for immediate deductions. You're right to be skeptical - most home repairs aren't immediately deductible. In my case, they identified some energy-efficient components in my renovation that qualified for energy credits I wouldn't have known about. They also provided clear documentation guidelines for tracking everything else as improvements to my home's basis for future tax benefits.

Wait, how does this actually work? The IRS phone lines are always jammed - how could they possibly get you through faster than anyone else?

This sounds like BS honestly. Nobody can "skip the line" with the IRS. They probably just keep redialing for you while charging you for the privilege. The IRS serves people in the order they call.

They use a system that navigates the IRS phone tree and holds your place in line for you. When an agent is about to answer, you get a call connecting you directly to that agent. It's not about "skipping" the line - it's about not having to personally sit on hold for hours. The service works with the existing IRS phone system but saves you from having to actively wait on hold. It's especially helpful during tax season when hold times can exceed 3-4 hours. They don't have special access - they're just solving the problem of you personally having to wait on the phone.

I didn't even think to check with my insurance! The remediation was about $2,200 of the total $8,500 project. I'll call my agent tomorrow to see if my policy covers any of it. Did you have to provide special documentation or photos to get your claim approved?

You'll want to call them ASAP as there might be time limits on filing claims. For my claim, I needed to provide clear photos of the damage, a written assessment from a mold remediation specialist identifying the type of mold, and detailed receipts for all work performed. They sent an adjuster out who took additional photos before approving the claim. Be prepared for them to ask when you first noticed the issue and if there were any ongoing water leaks you neglected to fix, as they sometimes use those as reasons to deny claims. If they do approve it, make sure to ask about any tax implications of the insurance payout - generally, insurance reimbursements for repairs that simply restore your property to its previous condition aren't taxable income.

This is actually good advice. My sister has severe asthma and was able to deduct mold removal as a medical expense with proper documentation from her doctor. She needed a letter specifically stating the home modification was medically necessary for her condition. Worth looking into if anyone in your household has documented respiratory issues!

This is interesting - my wife actually does have asthma that was flaring up around the time we discovered the mold. I never connected the two, but it makes sense. We do typically take the standard deduction though, so I'd need to calculate whether all our potential itemized deductions would exceed that. I'll check with her doctor to see if they'd provide documentation about the medical necessity. Thanks for this tip!

This is really helpful info about the lead paint angle! I hadn't even considered that possibility. The house was built in 1976, so there's definitely a chance lead paint could have been involved. The contractor didn't mention anything about lead testing or abatement during the work, but I should probably follow up with them to see if they did any testing or if they had to take special precautions. Do you know if there are specific tax benefits for lead abatement, or would it just be treated differently for documentation purposes? And thanks for the tip about first-time homebuyer programs - I'll check with my state's housing authority to see if there are any health and safety repair programs I might qualify for.

Lead abatement often qualifies for special tax treatment depending on your situation! If the lead removal was certified and documented properly, it might qualify for environmental remediation deductions in certain cases. More importantly though, many states and localities have grants or low-interest loan programs specifically for lead paint removal in older homes. You should definitely contact your contractor ASAP to ask about any lead testing they may have done - EPA regulations actually require testing in homes built before 1978 if renovation work disturbs more than 6 square feet of painted surfaces. If they didn't test or follow proper procedures, that's a separate issue you'll want to address. For the first-time homebuyer programs, check both state and local levels - some cities have their own programs separate from state offerings. Many of these programs have provisions for health and safety repairs discovered within the first 1-2 years of ownership, especially for issues that weren't apparent during the initial home inspection.