Damage From Corrosive Drywall

If you suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009, under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. For details, see Special Procedure for Damage From Corrosive Drywall under Casualty in Pub. 547.

Caution: Because the personal casualty losses claimed under this special procedure are not attributable to a federally declared disaster, they’re only deductible to the extent such losses don’t exceed your personal casualty gains.