State officials announced more help is coming for people with crumbling foundations in northern, central and eastern Connecticut Wednesday.
Congressmen Joe Courtney (D) and John Larson (D) say that after negotiating with the IRS, the agency has agreed to extend the amount of time people can get tax deductions for the cost of repairing their damaged basements.
People now have through the end of 2020 to make repairs, and until April 2021 to claim the repairs on their taxes.
Federal tax reform legislation passed last year eliminated the deductions for any work done after the end of last year. This new agreement adds several years to the deadline.
"This creates another window of opportunity for people to get the benefit of the tax deduction," Rep. Courtney told the NBC Connecticut Troubleshooters.
"We want to thank the Treasury Department and the Trump administration for working alongside us with this," added Rep. Larson.
The congressmen also gave credit to fellow congressman Richard Neal (D) of Massachusetts for his help in securing this deduction. Rep. Neal has recently began working with constituents in greater Springfield who have come forward saying they also have crumbling concrete basements.
Word of the IRS tax deduction comes just months after the state of Connecticut secured $100 million in bond money over five years to assist Connecticut homeowners with repairs.
The cost of repairing a basement with crumbling concrete often exceeds $200,000. Most insurers do not cover claims for this. The crumbling basements have been caused by concrete poured from 1983 through about 2013 in north central and eastern Connecticut that have the naturally occurring mineral pyrrhotite in it. When exposed to air or moisture, it can cause cracking.
At last check, 678 people have filed complaints with the state saying they have crumbling concrete problems with their home.
Homeowners should consult with a qualified tax preparer to see if they qualify for this deduction and determine how to use it on their 2017 or future returns as allowed under today’s updated guidance.
