Two Connecticut congressmen say they've received word that homeowners with crumbling foundations will soon be able to seek federal tax relief.
Democratic U.S. Congressmen Joe Courtney and John Larson say the Internal Revenue Service has agreed homeowners with foundations deteriorating because of the presence of an iron sulfide can deduct the cost of repairs from their federal taxes as a casualty loss.
Under the new IRS "revenue procedure," eligible taxpayers will be able to claim a loss for 75 percent of the unreimbursed repair costs in a given taxable year.
"They [IRS] are extending the casualty loss to homeowners suffering from crumbling foundations," Courtney said. "It's not going to be settling crack that we all experience. This is very targeted at the unique of set of facts that we're seeing happening in Connecticut."
Courtney and Larson met with Treasury Secretary Steve Mnunchin in September about the costly problem, which has affected hundreds of homeowners in eastern and central Connecticut.
The decision affects federal income tax returns filed after Nov. 21.
The Associated Press contributed to this story.
