Significant “Hope for Homeowners” with Chinese drywall
U.S. Senator Bill Nelson, D-FL, has received a response from the Internal Revenue Service (IRS) that could produce a glimmer of hope for homeowners whose residences are full of Chinese drywall. Just last month, Senator Nelson sent a letter to the IRS asking for clarification on whether victims of Chinese drywall might be able to deduct “casualty losses” under section 165(h) of the federal tax code.
The Environmental Protection Agency (EPA) and the Consumer Product Safety Commission (CPSC) are among several federal agencies investigating the reported problems of Chinese drywall. Among those problems are a foul sulfur odor and claims that the fumes emitted from the drywall corrode electrical wiring, affecting heating and cooling systems. There have also been reports of blackening or metal picture frames and jewelry. Of larger concern are the reports of health issues from homeowners and their families. Headaches, nosebleeds, respiratory problems and eye irritation are just a few of the health challenges that have been put forth.
In its letter of response, the IRS has made it clear that the only way these homeowners will receive a designation of “casualty losses” is if the government’s investigative agencies rule that the Chinese drywall is in fact “causing health and other problems.” A determination is expected in the next couple of months. If that is the case, homeowners could take advantage of the tax deduction when filing next year.
Posted by Sharon Walker
The defective Chinese drywall debacle has been making news for months now, with homeowners plagued by sulfur fumes that smell like “rotten eggs” and cause air conditioning coils to corrode. Residents complain of sinus and respiratory ailments, eye and skin irritation, persistent runny or bloody noses, headaches, and asthma. Some situations were so severe that residents had to vacate their homes. In some cases, victims have been harassed by builders into signing unfair, one-side remediation agreements. The issues surrounding defective Chinese drywall are confusing and worrisome. Here is a good blog that has been providing emerging and valuable information on the problems: http://www.chinese-drywall-answers.com
August 20th, 2009 at 6:30 am