Taxpayers who have suffered damages from certain types of imported drywall may be able to take a tax deduction for the damages. The Consumer Protection Safety Council says it has received several-thousand reports of “corrosive drywall” damage, including blackening or corrosion of copper wiring and copper elements of household appliances between 2001 and 2009.
Homeowners who have paid to have these drywall problems fixed can potentially take a casualty loss on their tax return. Click here to read IRS guidance on the issue from this past fall.
A casualty loss deduction is only available to taxpayers who itemize, and the deduction amount must be reduced by $100 and by 10% of your adjusted gross income.
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