NORFOLK -- The Internal Revenue Service says residents in the Hampton Roads area whose homes have been severely damaged by Chinese drywall may qualify for special tax deductions.

According to the IRS’s letter to Sen. Jim Webb (D-VA), homeowners may be able to claim a casualty loss on their tax returns if they have Chinese drywall that emits an unusual or severe concentration of chemical fumes that causes extreme and unusual damage.

The letter states, in part, "The law allows a deduction for qualifying casualty losses sustained during the tax able year and not compensated for by insurance or otherwise.   Damage or loss resulting from progressive deterioration of property through a steadily operating cause is not a casualty loss."

The IRS says the deduction amounts to the difference between the value of the house before and after the sudden, unexpected or unusual event causing the damage. That could mean a dedution of tens of thousands of dollars for some homeowners.

Webb's office also says the Consumer Product Safety Commission is now checking into reports that the Chinese drywall fumes not only corrode air conditioners, but other appliances such as refrigerators and stoves. The CPSC also is investigating reports that corrosion can lead to fires. 

For more information, contact Jeanne Evans in Senator Webb’s Virginia Beach office at 757-518-1679.