(WTNH) — Good news out of Washington, D.C. for homeowners impacted by a crumbling foundation.
Connecticut Congressmen Joe Courtney (D-CT 2nd) and John Larson (D-CT 1st) tell News 8 that homeowners who have their foundation replaced in the next three years will be able to get a federal tax write-off.Related Content: Tax relief extended through 2020 for homeowners with crumbling foundations
In November, the congressmen announced that those with the issue can file a property casualty loss deduction for the out of pocket costs associated with replacing their concrete foundations. Insurance doesn’t cover the replacement and the cost can go into the hundreds of thousands of dollars.
The tax deduction seemed short-lived when the president signed the tax bill in December. It eliminated property casualty loss deductions.Related Content: Capitol Report “After Hours”: George Colli talks crumbling foundations
However, the IRS has clarified its guidance and granted a three year extension. Now, anyone who replaces a foundation before the end of 2020 can amend their 2017 return and receive the tax break. The same can be done for anyone that replaced a foundation in the last three years.
The issue impacts hundreds, likely thousands of homes in the northeast corner of Connecticut and western Massachusetts.
The Connecticut State Legislature passed a bill last year that sets aside $100 million to study, test and create a program to replace the foundations.