Question- Is sewer fix deductible?

Question: I own a condo and last summer an inside sewer line became very sluggish. The line did not overflow or back up so we didn‘t have water damage.

We called a local plumbing company and they put a camera down the sewer line and determined the line had a "belly" or dip in it. They had to cut 30 feet of our concrete slab in the living room and hallway to replace the pipe.

Since we didn‘t have water damage our homeowners‘ insurance would not cover the loss and our condo association insurance does not cover anything below the slab.

My question is can I claim the $9,300 it cost for all the repairs as a non-business casualty loss. — Don B., Franklin

Answer: The facts presented surrounding the repair work show that you will not be entitled to a casualty loss deduction. In order for a loss to be classified as a casualty loss, it must be the result of a "sudden, unexpected or unusual cause."

An example of this would be wind damage from a tornado or roof damage caused by a hailstorm.

In this case, the deterioration of your condo‘s plumbing was probably gradual and would not qualify. Although the repairs were necessary and created a significant financial burden, the repairs should be added to the cost basis of your condominium and will be taken into account when determining the gain or loss upon the sale of your condo.

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