Corrosive Drywall? IRS to the Rescue

People stuck with homes filled with faulty Chinese drywall have gotten little help from insurers, builders, lenders or Chinese manufacturers. Now the Internal Revenue Service is stepping in to offer some financial relief.

A new procedure will allow you to treat damages from corrosive drywall and write them off as a casualty loss in the year of payment. Anyone who's paid for repair in previous tax years may file amended tax returns.