Thanks for the reply. I would agree that normally, a crumbling foundation would not qualify as a casualty loss under current rules. However, the IRS in Rev. Proc. 2017-60 provides additional tax relief to homeowners with crumbling foundations under certain circumstances. The Treasury Dept. and the IRS concluded that it is appropriate to provide a safe harbor method that treats certain (pyrrhotite) damage resulting from deteriorating concrete foundations as a casualty loss and provides a formula for determining the amount of the loss. The IRS will not challenge the taxpayer's treatment for a loss falling within the scope of the revenue procedure (Section 2, paragraph 10).
I was really looking for how to enter the information into Turbo Tax which you addressed. It appears Turbo Tax does not address this in the software directly. Thanks for your assistance.
