Homeowners with crumbling foundations can deduct repairs for the 2017 tax year and several years prior.
Congressmen Joe Courtney and John Larson have received confirmation from the IRS on Wednesday. The congressmen fought 19 months for the deduction and hoped it would be permanent.
“As the IRS confirmed in its letter, qualified taxpayers who paid to repair damage to their homes in 2017 or in prior open tax years will still able to deduct the cost of those repairs as a casualty loss on their 2017 returns. This is welcome confirmation for those homeowners who have already completed repair work on their homes and will soon begin to prepare their taxes,” Courtney and Larson said in a press release on Wednesday.
However, the recently passed tax reforms signed into law do not allow the deduction going forward in 2018. Only taxpayers who suffer damage related to a presidentially declared Stafford Act disaster may deduct their property-casualty losses.
The congressmen are still working with the IRS on tax relief for people with crumbling basements in 2018 and beyond.
Courtney and Larson suggest homeowners eligible for the current tax deduction consult a tax preparer.