IRS Sheds Light on Tax Implications for Grants to Fix Crumbling Concrete

There is some good news for homeowners who are dealing with crumbling concrete basements, an issue that NBC Connecticut Investigates uncovered more than four years ago.

It does not appear that most people will be taxed on state assistance they receive to replace their basements.

A letter the IRS sent to Congressman Joe Courtney says the Connecticut Foundation Solution Indemnity Corporation, the organization giving grants to fix homes, does not have to mail recipients 1099 forms, something usually done for a taxable event.

Still, Congressman Courtney and the rest of Connecticut’s congressional delegation warned every homeowner’s tax situation is different, and it is still a good idea if you got this aid to consult with a tax professional.

So far, CFSIC has put 75 families back in their homes.

Hundreds have applied for the assistance.

On average, the aid has been $144,000 for a single-family home, according to CFSIC. 

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