Mold abatement

[cassy-massy]

If mold was discovered in the attic and abated after the purchase of a home, are the costs added to the basis? Is it a casualty loss? Or something else?

If a gas fireplace was installed where there was just a regular wood burning fireplace before, how is that treated?  A line had to be run under the house.

And a second fireplace already had a gas line but the insert needed to be replaced because it did not work.  Is that the same?

what about light fixtures and things that were installed right after the home was purchased?  

[MarilynG1]

If you are not renting the home, you are correct that Capital Improvements are added to the basis of your home. 

The general rule is that if the improvement adds to the appraised value of the home, it would be added to your basis.  You could check with a local realtor to verify, but the installation of the new fireplace should qualify.

Click this link for more info on Home Improvements. 

Don't forget that you can deduct Sales Tax you paid on your home improvements.  This link gives more info on Sales Tax on Home Improvements.

The deduction for personal casualty or theft losses has been suspended (eliminated) through Tax Year 2025, unless the loss occurred in a federally-declared disaster area and was directly caused by the disaster.

Please see the TurboTax Help article "What if I have property that was lost or damaged (a casualty loss)?" for more information.