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