WASHINGTON, DC – U.S. Senators Richard Blumenthal (D-CT) and Chris Murphy (D-CT) announced efforts they are leading in the Senate to prevent Senate Republicans from including a provision in their tax bill that would abolish a critical deduction that provides relief for taxpayers who experience losses on their property – including homeowners in Connecticut with crumbling foundations. The bill as written would repeal the casualty loss deduction except in declared disaster areas, which would reverse 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 repeal of the casualty loss deduction would cruelly reverse the relief granted for homeowners who have suffered severe and costly property damage due to extenuating circumstances beyond their control – from fires, to vandalism, to crumbling foundations,” said Blumenthal. “I’ve heard firsthand from Connecticut homeowners who have endured extreme financial and emotional stress because of property damage. Federal relief—not a bait and switch betrayal-- is needed now more than ever. This duplicitous repeal is further evidence that this tax plan is truly a tremendous tax scam. I am proud to work with Senator Murphy on measures to oppose this cruel and shortsighted move, and determined to protect the casualty loss deduction from ruinous repeal.”
“Just a week after the Trump administration agreed to provide help to homeowners in Connecticut, Senate Republicans are trying to screw it up. People living with crumbling foundations have been through so much already. They don’t deserve to be jerked around like this. This is another reason we’re fighting tooth and nail against this disaster of a bill,” said Murphy.
Blumenthal introduced an amendment to the tax bill that would strike the provision repealing the casualty loss deduction from the bill. Murphy has introduced a Motion to Commit to direct the Senate Finance Committee to remove the provision from the bill.
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.