WASHINGTON -Residents whose homes have been damaged by tainted Chinese drywall may be eligible for a tax deduction similar to the one taxpayers can claim for damages caused by hurricanes, floods or fires, according to the Internal Revenue Service.

The final determination will be based on results of investigations being conducted on the drywall by two federal agencies, the IRS said in a letter to U.S. Sen. Bill Nelson, an Orlando Democrat.

Richard Kampf, 56, of Cape Coral said he was pleased Nelson took the lead to get help for those affected by the faulty drywall, which has plagued his home since he and his wife moved in two years ago.

“I can’t thank Sen. Bill Nelson enough,” said Kampf, who testified before the Senate Subcommittee on Consumer Protection, Product Safety and Insurance in May.

The U.S. Environmental Protection Agency and the U.S. Consumer Product Safety Commission are trying to determine whether the bad wallboard has been emitting dangerous levels of sulfuric gases suspected of causing property damage and health problems. If the agencies determine the drywall causes “an unusual or severe concentration” of such fumes, homeowners could qualify for a casualty loss deduction.

According to the IRS, a casualty loss “can result from the damage, destruction or loss of your property from any sudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption.”

The IRS, however, does not consider temporary housing and certain other personal expenses deductible.

As a result of the Chinese drywall, Kampf and his wife have experienced daily respiratory problems, including raspy throats and nosebleeds.

Fumes emitted from the drywall also have caused household appliances to erode, Kampf said.

Initial EPA tests released in May found Chinese-made drywall contains sulfur, strontium and two organic compounds found in acrylic paints. These materials are absent or found in significantly lower levels in U.S.-made wallboard.

Homeowners who have used Chinese drywall have complained the product emits a rotten-egg smell and has corroded wires and appliances. It also has blackened showerheads, door hinges and other metal objects in their homes, including jewelry, they said.

Trude Neill, 51, of Fort Myers said she and her neighbors in Bell Tower Park first realized there was a problem when they needed to replace air conditioning coils.

Neill said she also noticed silver in her household begin to tarnish.

For people who are paying out of pocket to fix their drywall issue, Neill said the tax deduction would be a “good thing.”

However, she said, if builders and developers are paying to settle the matter, a tax break would be questionable.

Nelson said Chinese drywall has been used in an estimated 60,000-100,000 homes nationwide. He estimates in Florida alone, it may be in 36,000-50,000 homes.

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