What happens if I have a loss due to a qualified disaster?
There are different rules for figuring your loss if it was due to a qualified disaster. Here are some differences:
You can take the loss even if you take the Standard Deduction instead of itemizing.
If you itemize, the loss doesn't need to be more than 10% of your adjusted gross income (AGI).
The $100 limitation per casualty is increased to $500.
There are some changes to calculating the alternative minimum tax (AMT).