Chinese Drywall Tax Breaks Approved!

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Homeowners with houses affected by tainted Chinese-manufactured drywall can now claim a "casualty loss" tax deduction, the Internal Revenue Service announced.

People who suffered property losses because their homes were built with defective Chinese drywall between 2001 and 2009 can use the tax break to help cover the cost of repairing the damage to their homes and appliances caused by the corrosive wallboard.

Consumers can file amended tax returns to claim the deduction, the IRS said in a statement.

The IRS is defining "corrosive drywall" using the interim identification method provided by the U.S. Consumer Product Safety Commission, the lead federal agency looking into the tainted drywall problem.

According to the CPSC, 3,628 people in the United States, American Samoa and
Puerto Rico have submitted complaints about defective drywall; 2,083 of those were from homeowners in Florida.

Sen. Bill Nelson, D-Fla., and three Virginia representatives sent a letter in late 2009 urging the IRS to give affected homeowners a tax break.

"This is welcome and long overdue news," Nelson said in a statement about the IRS announcement. "This tax relief is just another important step to help drywall victims piece their lives back together."

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