Question

Money tree mushrooms   My husband and I have a money tree plant we recently received for our new home.  We transplanted in in a bigger pot and it has grown without problems for three months and doubled in size.  Within the last few weeks we noticed the leaves turning yellow and falling off, small knats and just yesterday small mushrooms growing at the base.  We stopped over watering as that is what our research has indicated for the falling leaves.  
My questions...
Should we transplant the tree yet again and scrap off all the dirt as much as possible to get rid of the mushrooms and any other fungus that may be growing?
Are these mushrooms poisonous i.e. should we wear a mask and gloves when handling them?  
What kind of soil should we use for an indoor plant that gets plenty of East side sun in our sunroom?  
What is the ratio for pot to plant size for these trees?  
Thank you for your help.

Answer
Your diagnosis regarding the over watering is absolutely correct. It is the primary cause of problems with house plants.

Now that the soil has fungus spores on the surface, which in turn is resulting in the mushrooms, I would repot the plant. Use a fertile potting soil from a reputable source. Pot the plant in a container as wide as the perimeter of the plant and no smaller than 8" in diameter.

In the future, only water when the top 3" of soil has dried out. A better option is to purchase a moisture meter from your local garden center. They work great and are relatively inexpensive. When you do water, water deeply until the water seeps from the drainage hole. This should eliminate the problems you are currently experiencing.

I hope this helps. Have a great weekend.

Regards,

Mike