Construction Law

U.S. Senators Ask IRS to Make Chinese Drywall Repairs Tax Deductible

Three United States Senators from Florida and Virginia have appealed to the Internal Revenue Service (IRS) requesting that the costs incurred to homeowners affected by Chinese Drywall be deductible for federal tax purposes. In a letter sent Tuesday June 16, 2009, the Senators ask the IRS to include Chinese Drywall in the list of ?unexpected events? which are currently listed as deductible under section 165(h) of the tax code. Fire, storms and theft are currently included in the list of the IRS? unexpected events.

The Senators argue that homeowners are facing thousands of dollars in repairs, and most families cannot cover the costs associated with the repairs as well as the cost of staying elsewhere while their home is being fixed. The Senators also request that inspections go beyond that of individual homes and include tests to determine what materials were used in commercial and public buildings.

Chinese drywall has been found in several condominiums and was recently discovered in a new hotel still under construction in Chesapeake, Virginia. Additionally, it has been suspected to have been used in the construction of a Tampa day care center built just this year.

Full post as published by Construction Litigation Law Blog on June 23, 2009 (boomark / email).