Chinese drywall tax deduction

HAMPTON ROADS, Va. - Local homeowners severely affected by chinese drywall may now qualify for special tax deductions.

In response to a letter from Senator Jim Webb, the interanal Revenue Service (IRS) has declared residents, in or around Hampton Roads, whose homes have been severely damaged by Chinese Drywall may qualify for the special tax deductions.

"For those who have been affected by these harmful materials, this news will give them some financial relief," said Senator Jim Webb. "I look forward to hearing more from the U.S. Consumer Product Safety Commission on how to remedy this problem and prevent it from happening in the future."

Qualifying taxpayers may be eligible to claim tens of thousands of dollars on their tax returns for the damage Chinese drywall has caused them.

Congressman Glenn Nye co-signed the letter to the IRS with Sen. Webb, Sen. Warner, and Sen. Bill Nelson of Florida.

Congressman Nye said, “The loss these families have suffered as a result of toxic drywall is just as severe as any fire or flood, and they should get the same tax break. As we keep working on a long-term solution to this problem, I hope this decision will give these families some much-needed relief.”

WAVY.com has covered tainted Chinese drywall found in several homes around Hampton Roads. The drywall not only affects Virginia residents, residents in 20 other states as well. During our investigation, WAVY.com uncovered that the materials found in the drywall cause corrosion of electrical wiring and damage air-conditioning coils and other household appliances.

Senator Webb's office says the drywall has also been linked to health problems for homeowners and their families, including respiratory problems and insomnia. Some homeowners have been forced to relocate and pay for a new home in addition to the mortgage on their tainted house.

Most cases have popped up in Virginia, Florida and Louisiana, according to the U.S. Consumer Product Safety Commission (CPSC), which began its own investigation in February.

The CSPC also revealed new concerns that drywall fumes not only corrode air conditioners, but other appliances such as refrigerators and stoves. It is checking into reports that corrosion can lead to fires.

Click HERE to view the original letter to the IRS from Senator Jim Webb.