IRS Okays Tax Deduction in Some Chinese Drywall Cases
The IRS has come out with some news to improve the holidays for people with Chinese drywall problems. Many may be able to claim a tax deduction for the drywall problems.
Why does anyone by anything from China anymore? The products are of questionable quality. The latest issue is with Chinese drywall. It isn’t flaking or falling apart. Instead, there have been thousands of complaints about a rotten egg like smell emanating from it. Boy, talk about killing your love life! Nobody is sure what the exact problem is yet, but it seems to be prevalent although not in all drywall imported from China.
The problem in this situation is what do you do? The only solution is to remove and replace the drywall. This is costly and Congress has been bandying around the idea of giving taxpayers relief. This should tell you all you need to know about the incompetency of our representatives. How so? No new law is needed because a tax deduction already exists for situations like this!
Homeowners who suffer from Chinese drywall that smells like rotten eggs can claim a casualty loss deduction. As with all casualty loss deductions, the homeowners must prove the loss is sudden, unusual and unexpected. That shouldn’t be too hard given the fact nobody expects their drywall to start smelling like a sulfur pit! If the IRS gives you grief, which it won’t, just invite them over for a meeting!
This is one of those issues that our representatives love because it is a win for them if they take action. As a result, you can expect some special tax incentive to come down from the heights of Congress on this issue. Until then, however, sit down with your accountant and see if you can make hay with a casualty loss tax deduction on your 2009 tax returns.