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There may be many benefits associated with environmental cleanups; tax deductions may not he one of them.
Last year the IRS held in TAM 3240004 that asbestos removal costs had to be capitalized. Now the IRS, in TAM 9315004, has required the capitalization of costs incurred in testing and replacing contaminated soil. Certain legal fees and the costs of testing non-contaminated properties are deductible,
however.
As the result of an Environmental Protection Agency...