The formation of the mold may qualify as a casualty loss. A casualty is an event identifiable as damaging to property, sudden, unexpected, and unusual in nature.
If the formation of mold is a sudden, unexpected, unusual and the result of an identifiable event that caused damage to your property, it would qualify as a casualty and you may be entitled to deduct the loss for the resulting property damage as a casualty loss.
You are not entitled to a casualty loss deduction if the mold damage occurred as a result of insufficient repairs to or maintenance of your property.
If you enter this cost as a deduction on your return, you will have to provide further documentation to justify this expense as a casualty loss.
However, any eligible/qualified medical expenses incurred as a result of the event at your property should be deductible if you itemize on Schedule A. Qualified medical expenses include:
- Payments to or payments for services to doctors or dentists
- Hospital fees
- Prescription medications
- Medical equipment and supplies
- Miles driven with your car for medical purposes
Go to Search (top right), then type the exact phrase 'medical expenses, sch a' into Ask your question or search TurboTax. Jump to medical expenses, sch a from the results.
