Last month, the Internal Revenue Service implemented special tax deductions for homeowners severely affected by Chinese drywall. United States Senator Jim Webb (D-VA) wrote to the agency in June, claiming that deductions would be necessary to relieve the enormous financial burden faced by many of his constituents with Chinese drywall. Such tax breaks, according to Webb’s statement, would be permissible on the premise that drywall damages fall under the category of “casualty losses”–losses of property not connected with a trade or business or a transaction entered into for profit, if such losses arise from fire, storm, shipwreck or other casualty or from theft. Congressman Glenn Nye (D-VA), who signed on to Webb’s letter, claimed that the damages caused by defective drywall are “just as severe as any fire or flood” and that homeowners should be entitled to the same financial protection as fire and flood victims. Webb’s letter also earned endorsement from Senators Mark Warner (D-VA) and Bill Nelson (D-FL). Thanks to congressional initiative, distressed homeowners with defective drywall now have some financial recourse.


Theme by HermesThemes

Copyright © 2013 Law Offices of Richard J. Serpe, PC. All Rights Reserved