Scalise: IRS Announces Tax Relief for Homeowners with Toxic Chinese Drywall

Washington, DC – October 1, 2010 – (RealEstateRama) — Congressman Steve Scalise today issued the following statement after the Internal Revenue Service announced it would allow homeowners with toxic Chinese drywall to treat the damages incurred from toxic drywall as a casualty loss for tax purposes.

“This is welcome news and represents a long awaited step for homeowners who have had to struggle with toxic Chinese drywall in their homes,” Scalise said.  “Homeowners continue to suffer tremendous burdens from toxic Chinese drywall, and I am glad that the IRS is working with us and allowing people to deduct the cost of repairs from their taxes.”

This tax break is the first large-scale effort by the federal government to provide financial relief to victims of Chinese drywall.  Deductions are allowed only on amounts that exceed $500.  In order to receive the tax break, homeowners must also have started the process of repairing their homes, and the amounts paid for repairs must exceed 10 percent of the taxpayer’s adjusted gross income.  This tax relief applies to any individual who paid out of pocket to repair damage from toxic drywall.

Under this procedure, “corrosive drywall” is drywall that is identified as problem drywall under the two-step identification method issued by the Department of Housing and Urban Development and Consumer Product Safety Commission as part of their interim guidance on January 28, 2010.

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Contact: Stephen Bell
202-226-9113

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Comments

This deduction only helps the Chinese drywall homeowners who are already wealthy enough to have fixed their homes for the estimated cost of $86 square foot. “This revenue procedure applies to any individual who pays to repair damage to that individual’s personal residence or household appliances that results from corrosive drywall”. This in no way assists the 99% of the Chinese drywall homeowners who can’t afford to fix their homes to begin with!
This is just like a year ago when the government told us to go and get CDBG! We did not qualify for those either! Most of us are middle class and have been out of our homes for 18 months with little to no assistance! Those are the lucky ones! The other families cannot afford to get out of their homes and are stuck living in this toxic environment! Our government needs to step up and recognize that this toxic product was allowed into this country and now they must take steps to truly assist these Victims of Toxic Chinese Drywall and help our judicial system to recover the money from China for our losses.
If you have CDW and want to join the lobbying efforts of the Victims of Chinese Drywall write to us at chinesedrywall_1 (at) yahoo (dot) com

I truly feel our government has been slow to force anyone to assist the large number of families with this costly problem. My children where born and risen in this environment

My family and I have been out of our home for 1 year paying rent that is higher than our Mortage. Mutliple estimates to repair the home have come in at over $300,000. My wife and I are two middle class working parents that do not have that type of funds to even start the remediation of the home. I have emailed, written and called every state rep in our area, we have called and email the Govenor’s house, and the White House with no response. I am in the area where the Oil Spill has affected so many Louisiana home and business owners. Why can’t our government take the same approach with our issue that they took with the oil spill. I understand the magitude of the spill however, it didn’t stop President Obama and other officials from moving swiftly to get BP to cough up some money. If you are a victim of Chinese Drywall, simply waiting for the class action suit to come through will take years, we don’t have that much time. Everyone needs to begin standing up for ourselves and demanding a response from our State Rep’s, our president. Write letters, make phone call until someone listens. Don’t wait on other!

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