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It depends on whether you are talking about your personal home or a business/rental property.
Personal home
No. The expense is not deductible. However you can consider the treatment as an "improvement" and add the cost to the basis of the property, which will reduce any gain when you sell the home in the future.
Business or Rental Property
Maybe. If the removal is for a business or rental property, it depends on the type of treatment.
In TAM 9240004 and TAM 9411002 the IRS stated that encapsulation (wrapping of exposed and damaged pipe insulation) is deductible.
However, asbestos removal costs are not deductible as ordinary repairs and maintenance, but instead must be treated as capital expenditures. [Environmental Aspects of Real Estate and Commercial Transactions: From Brownfields to Green Buildings by James B. Witkin, 3rd Edition Edition, Feb 22, 2005]
It depends on whether you are talking about your personal home or a business/rental property.
Personal home
No. The expense is not deductible. However you can consider the treatment as an "improvement" and add the cost to the basis of the property, which will reduce any gain when you sell the home in the future.
Business or Rental Property
Maybe. If the removal is for a business or rental property, it depends on the type of treatment.
In TAM 9240004 and TAM 9411002 the IRS stated that encapsulation (wrapping of exposed and damaged pipe insulation) is deductible.
However, asbestos removal costs are not deductible as ordinary repairs and maintenance, but instead must be treated as capital expenditures. [Environmental Aspects of Real Estate and Commercial Transactions: From Brownfields to Green Buildings by James B. Witkin, 3rd Edition Edition, Feb 22, 2005]
We had an investment property that we ended up selling at a substantial loss (due to when we purchased the home as a “fixer upper” the inspector overlooked some major repairs one being the foundation). We started the renovation process which included testing for asbestos, which came back positive and removing the asbestos. When entering the purchase price we paid for the investment property along with the sales price, in the investment property loss do we/can we include the total cost for asbestos abatement removal along with engineering planning costs?
Yes, when you enter the sale of the investment property you can use the engineering costs and asbestos abatement. You will enter the proceeds of the sale and the cost basis of the house to record the sale.
The cost basis is the purchase price of the house plus any improvements that you made to the property which include the engineering costs to fix the foundation and the asbestos abatement removal.
To qualify as an increase in the adjusted basis when you sell, the home improvement must:
Here are some examples of improvements:
Other expenses found on the settlement statement that can be added to the basis are:
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