Just last week, U.S. Representatives John Larson and Joe Courtney announced they had reached a deal with the Internal Revenue Services that would permit homeowners of crumbling foundations to take a casualty loss for money they spend to repair or replace their foundations.
Now comes word the Republican tax plan, being debated in Congress, would halt the deduction. The House bill, which has passed, and the Senate bill, still being debated, would not permit homeowners to deduct the cost of repairing their basements. In the Senate version, however, a deduction would be allowed if the president issued an emergency declaration.
Unless the Connecticut foundation problem is grandfathered in, homeowners could be out a deduction they thought they had.