How / where do I deduct lead abatement on a rental property?

[view2]

The 2008 proposed regulations required a taxpayer to capitalize an amount paid to ameliorate a material condition or defect that existed at the time the taxpayer acquired or produced the property. The rule follows the general principle that a taxpayer must capitalize costs incurred to correct a pre-existing defect in acquired property regardless of whether the taxpayer was aware of the defect at the time of acquisition. 

If value increases in this context, then the remediation costs must be capitalized.

However,26 U.S. Code § 198 - Expensing of environmental remediation costs

YOU MUST have a  statement from  your State environmental agency for this election.

The treatment depended on each individual circumstances and you must have proper documentation as a "qualified contaminated site." from the State environmental agency.

[cmorales1966]

"If value increases in this context, then the remediation costs must be capitalized" I'm assuming you mean value of rental property? If so that is not the case. The house was cited by the Health Department for lead poison. I had to do lead abatement in order to get property rented again. I'm unsure how or where to deduct this expense. Please advice...

[view2]

YOU MUST have a  statement from  your State environmental agency for this election.{ Ensure you maintain that statement for your records.}

The very last expense section in the rental section is "Other Expenses"

For Description enter "“Section 198 Election”" this is critical for the deduction .[i.e. you have to cite the exact words for the deduction]Then the amount in space to right of description.

To deduct these remediation costs under section 198 you  must comply with the requirements of that provision.

Ensure you printout and maintain your Tax return and worksheets for your records and all state documentation and receipts if questioned.[i.e. this means you know where they are maybe three years from this year.]

[grandpadave]

This topic seems much more complicated. When I internet searched section 198 election, I found this:

(h) Termination. This section shall not apply to expenditures paid or incurred after December 31, 2011.

So I assume this is no longer valid. Does anyone know if it was extended?

[grandpadave]

I just found this, but still not able to deduct after this date

2010—Subsec. (h). Pub. L. 111–312 substituted "December 31, 2011" for "December 31, 2009".