MURPHY & BLUMENTHAL APPLAUD TAX RELIEF EXTENSION FOR CRUMBLING FOUNDATIONS HOMEOWNERS

WASHINGTON, DC – U.S. Senators Richard Blumenthal (D-CT) and Chris Murphy (D-CT) applauded updated guidance issued today by the Internal Revenue Service (IRS) that extends the period of time that homeowners have to claim crumbling foundation-related repairs on their federal tax returns. U.S. Representatives John Larson (CT-01) and Joe Courtney (CT-02) announced the updated guidance, which allows Connecticut homeowners with crumbling foundations to take advantage of a federal tax deduction that provides relief on qualified home repairs through December 2020. 

“Connecticut homeowners with crumbling foundations can breathe easier tonight knowing they’re getting significant longer-term federal relief to repair their homes,” said the Senators. “We’ve seen the emotional and financial devastation that crumbling foundations have caused Connecticut homeowners, and they deserve every bit of this relief. We applaud the hard work of Congressman Larson and Congressman Courtney, and we will continue to work with them to do whatever we can to help these families.”

The 2017 Republican tax bill included a provision repealing the casualty loss deduction except in declared disaster areas, which reversed the U.S. Treasury’s recent decision to allow homeowners with crumbling foundations to deduct repair costs as casualty losses from their taxable income. The updated IRS guidance will allow homeowners to make qualified repairs to their homes through the end of 2020, and to claim those repairs on an amended 2017 federal tax return through April 2021.

Murphy and Blumenthal jointly wrote the IRS in July in support of Treasury’s decision to implement the additional deduction for homeowners suffering from crumbling foundations. 

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