Frequently Asked Questions
Q: I’m looking to file for the “casualty loss deduction” federal tax relief. How do I get this process started?
A: First, I would highly recommend that you consult a qualified tax preparer to ensure that you are following the necessary requirements to claim the casualty loss deduction.
Secondly, the IRS has explained, via the webinar, that when claiming a deteriorating foundation related casualty loss under Revenue Procedure 2017-60, the tax return must be paper filed and the form 4684 (the casualty and thefts form) must be marked "Revenue Procedure 2017-60" on the top of the form.
Q: I have a question about Connecticut’s Captive Insurance Company and the claims process.
A: Although my staff and I have been in close communication with the Connecticut Foundations Solutions Indemnity Company, all decisions made regarding eligibility and claim denials are handled by CFSIC, not my office. To this end, I would encourage you to reach out to firstname.lastname@example.org if you have specific questions on your particular case.
Q: I am a condominium owner. Am I eligible for any assistance?
A: Yes, through the Captive Insurance Company. Please contact CFSIC at crumblingfoundations.org for more information.
Q: I have a question about a bill or policy on the state level. How do I get in touch with my state representative or state senator?
A: To find your elected officials, please visit https://www.cga.ct.gov/asp/menu/cgafindleg.asp.
Q: When must I repair my foundation by to take the casualty loss deduction on my federal taxes?
A: From the IRS: The loss is deductible in the year the foundation repairs are paid for. However, there is an exception to this rule for casualty losses claimed on a 2017 tax return under Revenue Procedure 2018-14. For a timely filed 2017 tax return, qualifying payments made to repair deteriorating concrete foundations must be made after 2017 but before April 17, 2021, to be deducted as a casualty loss on an amended 2017 tax return.
Q: What does the “net operating loss” from the IRS allow me to do?
A: From the IRS: A taxpayer can carry these net operating losses back two years and forward 20 years and the net operating losses can offset 100% of the taxpayer's taxable income in the carry back or carry over years. Any net operating losses from casualty losses meeting the requirements of Revenue Procedures 2017-60 and 2018-14 are treated as arising either in or before the 2017 taxable year.
Q: What happens if I receive an insurance payment after I deduct the loss?
A: From the IRS: If you receive an insurance payment after you deduct a deteriorating residential concrete casualty loss, whether it's an insurance payment or a payment from the captive insurance company from the state of Connecticut or a lawsuit, that amount of money would have to be reported as income in the year that you receive it.
If you have any questions, or need help with resources related to crumbling foundations, you can contact my Norwich district office at (860) 886-0139 or send me an email at https://courtney.house.gov/contact