Toxic drywall tax deduction may be on the way

The IRS may rule to help homeowners who have toxic drywall. The agency is putting out a letter, that says: it may consider loss of home value, due to Chinese drywall, a casualty event. That would mean: homeowners could deduct the loss from their taxable income, possibly as soon as this tax year. The IRS letter goes on to warn: It will follow through with the casualty designation, only if the federal government rules that the Chinese drywall is causing health and other problems. That ruling should come in a couple of months.