Update on Chinese Drywall Issue, IRS may offer tax deducation

Residents whose homes have been damaged by tainted Chinese drywall may be eligible for a tax deduction similar to the one taxpayers can claim for damages caused by hurricanes, floods or fires, according to the Internal Revenue Service.

The final determination will be based on the results of investigations being conducted on the drywall by two federal agencies.

According to the information contained in the IRS link(below), a casualty loss "can result from the damage, destruction or loss of your property from any sudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption."

IRS Topic 515 - Casualty, Disaster, and Theft Losses