From the Office of Joe Courtney, 10/19/18
Courtney and Larson Announce Major Development for Crumbling Foundations
On Tuesday, Congressman John Larson and I announced a brand-new tax clarification from the IRS which will provide relief for middle-class homeowners with crumbling foundations. The IRS clarification will allow homeowners to “carry forward” or “carry back” a net operating loss should their casualty loss exceed their income. This clarification means that even if the net loss suffered by a homeowner exceeds their annual federal tax liability, they can carry forward that loss for up to 20 years and can carry back for two years. This development is going to have significant implications for middle-class homeowners whose repair costs exceed their annual income.
This clarification builds on the critical development that Congressman Larson and I announced last year that the IRS would allow homeowners to claim a casualty loss on their 2017 tax returns to recoup the costs of repairing a home foundation. This announcement is the result of more than two years of work we have done with the IRS to secure this critical tax deduction for homeowners in our state. We are grateful for the continued attention of the IRS and Treasury Department to this crisis in Connecticut, and the support they have provided today to homeowners struggling with the damage caused by crumbling foundations. Also, we are grateful to have had the support of the Connecticut Society of Certified Public Accountants and their Executive Director, Bonnie Stewart, in this effort.
Our work is not done, and we will continue to work with officials at every level of government to solve the crisis of crumbling foundations in our state.