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Thread: Tax Credit for Radon Mitigation?

  1. #1
    Join Date
    Jun 2000
    Location
    CO, USA
    Posts
    558

    Tax Credit for Radon Mitigation?

    After we purchased our home, we had a radon mitigation system installed, since the home had failed the radon inspection. The mitigator said the cost may be tax deductable. I've searched IRS.gov and Thomas and can't find any information. Does anyone know whether it is deductible? (I should add that our accountant hasn't been very helpful, which is why I'm checking on this myself.)

    thanks,
    mlynn

  2. #2
    Have you tried calling the IRS? My husband called their "hotline" number last year and I was surprised how helpful they were. If you don't get someone helpful the first time, just call back and you'll probably get someone else.

  3. #3
    Join Date
    Oct 2002
    Location
    Central California
    Posts
    434
    I have to be honest and admit that I have no clue what a radon mitigation system is. However, I typed the term in our vast tax research database, and this is what came up. I wish I could have helped more.



    COM-RPT-HIST, [HRRepNo 100-1104], 1988 Technical Corrections Conference Report , (Oct. 24, 1988) PART 02 OF 04.

    9. MEDICAL EXPENSE DEDUCTION FOR CERTAIN RADON MITIGATION COSTS

    Present Law

    Taxpayers who itemize deductions are allowed to deduct medical expenses of the taxpayer, spouse, or a dependent, to the extent that such expenses exceed 7.5 percent of adjusted gross income (sec. 213). The cost of a permanent improvement to a residence may be deductible as a medical expense if the expenditure is directly related to medical care, but only for any portion of the cost that exceeds the increased value of the property attributable to the improvement.

    House Bill

    No provision.

    Senate Amendment

    Specified types of home improvement costs incurred to mitigate radon gas exposure are treated as medical care expenses eligible for the section 213 deduction. This provision applies only if the taxpayer shows, through measurements taken by a State or by a person approved by the Environmental Protection Agency (EPA), that radon levels in the taxpayer's home exceeded the level of safety recommended by the EPA. The full amount of such specified types of radon mitigation expenditures is eligible for the medical expense deduction without regard to whether such expenditures increase the value of the home.

    The specified types of home improvements for mitigating radon gas exposure are: (1) sub-slab ventilation; (2) drain-tile ventilation; (3) block-wall ventilation; and (4) sump ventilation. In addition, Treasury regulations may provide that installation of air heat exchangers and air filtration systems as well as other techniques may be eligible for the deduction, if the taxpayer shows that one of the four specified techniques listed above failed to reduce the concentration of radon gas in the air of the residence to the level of safety recommended by the EPA.

    The provision is effective for taxable years beginning after December 31, 1987.

    Conference Agreement

    The conference agreement follows the House bill.
    "Broken cookies don't have calories" - Unknown

  4. #4
    Join Date
    Oct 2002
    Location
    Central California
    Posts
    434
    Here's another.

    PROP-LEG, 102d Congress, Radon Reduction Incentives Act of 1991., (Apr. 24, 1991)
    2005, CCH INCORPORATED. All Rights Reserved. A WoltersKluwer Company

    H.R. 1795
    Gordon, Rep. Bart
    U.S. House of Representatives
    102d CONGRESS 1st Session

    H.R. 1795
    To ensure that amounts paid for home improvements to mitigate radon gas qualify for the tax deduction for medical care expenses.

    IN THE HOUSE OF REPRESENTATIVES

    April 16, 1991
    Mr. Gordon introduced the following bill; which was referred to the Committee on Ways and Means

    A BILL
    To ensure that amounts paid for home improvements to mitigate radon gas qualify for the tax deduction for medical care expenses.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,



    SECTION 1. SHORT TITLE.


    This Act may be cited as the "Radon Reduction Incentives Act of 1991".



    SEC. 2. FINDINGS.


    The Congress finds that --


    (1) indoor air contamination has become the focus of increasing concern among public health officials in the United States;


    (2) radon gas is a major component of indoor air contamination;


    (3) the problem of indoor air radon gas contamination has been found in areas throughout the United States and has been estimated by the Federal Environmental Protection Agency to be responsible for as many as five thousand to twenty thousand lung cancer deaths annually in the United States;


    (4) mitigation of indoor radon gas exposure is necessary to protect the health of residents;


    (5) mitigation of indoor radon gas exposure prevents increased risk of lung cancer; and


    (6) mitigation of indoor radon gas exposure can be costly, imposing excessive financial burdens on homeowners.



    SEC. 3. HOME IMPROVEMENTS TO MITIGATE HARMFUL LEVELS OF RADON GAS

    EXPOSURE QUALIFY FOR MEDICAL CARE EXPENSE TAX DEDUCTION.


    (a) In General. -- For purposes of section 213(d)(1) of the Internal Revenue Code of 1986 (defining medical care), amounts paid for qualified home improvements to mitigate measured harmful levels of radon gas exposure shall be treated --


    (1) as expenses paid for medical care; and


    (2) in the same manner as amounts paid for other home improvements which qualify as expenses paid for medical care.


    (b) Effective Date. -- Subsection (a) shall apply to taxable years beginning after December 31, 1991.
    "Broken cookies don't have calories" - Unknown

  5. #5
    Join Date
    Mar 2001
    Location
    IL
    Posts
    12,505
    Our house failed too, but we had the builder install and pay for the system. Can't help you about the tax issue though.

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