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Photo of Senator John Larson.

STATE SENATOR

Tim Larson

Getting Results

Free IRS Webinar on Deduction for Crumbling Foundations

As our region continues to deal with the aftermath of crumbling foundations due to pyrrhotite, I want to join Congressman John B. Larson and Congressman Joe Courtney in letting you know about that the IRS Stakeholder Liaison will be conducting a free webinar tomorrow, Wednesday, October 24, at 10:00 AM for tax preparers and homeowners who would like to learn more about deducting the cost of crumbling foundations repairs from their taxes. Those who do not have computer access at home can watch the live broadcast of the webinar at the South Windsor Public Library, 1550 Sullivan Ave.

Last week, Congressman Larson and Congressman Courtney announced that the IRS had issued a clarification that homeowners can "carry forward" or "carry back" a net operating loss under the casualty loss deduction for crumbling foundations repairs. This clarification means that even if the net loss suffered by a homeowner exceeds their annual tax liability, they can carry forward the loss for up to 20 years and can carry back for two years.

The web conference will feature a discussion of the qualifying rules for claiming casualty losses related to deteriorating concrete foundations caused by the mineral pyrrhotite; including an overview of Rev Proc 2017-60. The conference will also feature a discussion of the deductibility of payments after 2017 made to repair these foundations as found in Rev Proc 2018-14. Payments made in 2018 and beyond may still be deductible as casualty losses.

The webinar will take place tomorrow Wednesday, October 24, from 10:00 AM until 11:00 AM with a Q and A afterwards.