Were you a victim of a natural disaster or theft this year? Here are some tax tips:

If you're a victim of a natural disaster or theft this year, then here are several things you should be aware of:

1. In order to qualify to claim deductions for casualty and theft loss, you must itemize your return on Schedule A.
2. Disaster damages are not minor wear and tear "damage" of the property. It must be substantial, sudden, unusual and unexpected.
3. Generally, casualty and theft losses covered by insurance is not deductable, unless the amount of loss is greater than the reimbursement by the insurance and the taxpayer files timely.
4. The deduction is generally the lesser of your adjusted basis or the decrease in value of the property.
5. If it's personal property, then your loss is subject to 10% AGI limitation and also further reduced by additional $500. If it's business property, then your loss is your adjusted basis, less salvage value, less reimbursement from insurance and the additional $500 reduction and 10% does not apply.
6. Different rules apply to "Federally-Declared Disaster" areas.

source: http://www.irs.gov/newsroom/article/0,,id=212012,00.html