Deduct Costs Of Stinky Chinese Drywall From Your Taxes

You can get some money if your home was ruined by defective Chinese drywall that emitted nasty-ass sulfuric fumes. The IRS yesterday said that homeowners could treat the damages to both their homes and appliances as a casualty loss and deduct it from their taxes.

Hit the link to see if you qualify and learn how to calculate the amount of the loss.

IRS Provides Relief for Homeowners with Corrosive Drywall [IRS via Consumer Reports Money Blog]

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  1. Primarylupine says:

    My Friday-addled brain processed that as “Stinky Cheese Drywall”. However, that may be an apt description from the horror stories I’ve read.

    Stinky processed cheese?

  2. Loias supports harsher punishments against corporations says:

    Oh great, let’s reduce the taxes on damage from a consumer product instead of forcing the companies that sold it to us pay for their mistakes.

    Government-sponsored bailout of Lowe’s and Home Depot.

    (Yes, it’s a little bit of hyperbole for effect. It’s really not that crazy. But some of you won’t read this whole comment anyway, so everyone look out for idiots who can’t RTFComment.)

    • fredbiscotti says:

      While I’m sympathetic to homeowners that are stuck abating this defective product, especially when they didn’t know it was there in the first place, I’m angry that whatever business put it in in the first place isn’t being held responsible.

      Maybe it’s that a Chinese company is immune to American prosecution? I’m not sure.

      • Loias supports harsher punishments against corporations says:

        We can still go after the company that sold it to the homeowner. That company can then seek damages from the manufacture or reseller who gave it to them.

        Unfortunately, as a reseller (ex. Lowes) you bear the burdon to take responsibility for the products you sell, even if you did not manufacture them. Like someone’s comment regarding outsourcing phone customer service: When you call for customer service and reach an incompetent, ineffectual technician from another country that is a third part company doing support for Dell, you don’t curse the name of the third party company, you curse Dell’s name

      • selkie says:

        There are a couple big Florida homebuilders who are trying to do the right thing, and setting aside millions of dollars for Chinese drywall remediation ahead of the lawsuits over it.

    • keepher says:

      Actually there are lawsuits in place against suppliers of the drywall. China has been called on it but how do you think they responded? Or even what do you think China will do about it?

      This is where, we as consumers, must educate ourselves as much as possible before laying down our money. I spend more time researching where a product comes from then I do shopping.

      • Loias supports harsher punishments against corporations says:

        See below comments. The end seller should bear the burdon of responsibility against the customer.

        And in turn, the manufacturer should bear the burdon of responibility against reseller.

      • Nigerian prince looking for business partner says:

        I think the “should have researched” approach is that drywall is essentially a commodity and it’s very difficult to determine who the supplier is. It’s like buying 2x4s, copper pipe, plywood, etc. — You typically put in a big order from a lumber yard or supply shop for the quantity and type of what you want and then it arrives on site later that day.

        • keepher says:

          And when you say it has to be made in the USA and if its not then it goes back and you’ll do business elsewhere they’ll make certain its made in the US. Not that hard since all of it is stamped where it was produced.

          • FatLynn says:

            It’s not even that complicated. Those of us in the industry can spot the brand a mile away.

            That said, at the time, people were buying from China because domestic producers could not keep up with the demand. Your choice was Chinese drywall or nothing.

            It is not cheaper to buy from China….wallboard is cheap to make and expensive to ship.

  3. kylere1 says:

    Nice of the US Government to subsidize criminal Chinese companies.

    • RaysPizza says:

      Hey, at least it didn’t burst into flames…. it only made other things do that… and some people like the smell…

  4. H3ion says:

    Not sure how this will work but a corporation in the United States has to qualify to do business in each state in which it has a presence. Could we require non-US companies to register to do business as a condition of allowing their products into the country? That way we could at least make sure they were subject to suit here and, if they had too many problems, pull the registration.

  5. diagoro says:

    I used to do some work with a company that was involved, and saw quite a few photos of the damage. I’m guessing quite a few of these homes were large scale housing developments, not just home buyers themselves. I also heard that a large percentage of this went to New Orleans after the flooding (will they ever get a break?).

    But if it’s the Chinese companies that are at fault, and they don’t take any form of responsibility, than it’s just ANOTHER debt the United States will owe them.