When you suffer a casualty loss—a robbery, perhaps, or hurricane damage, Uncle Sam is willing to help you recover from the loss—in a rather limited manner.

You can claim a loss to the extent that you are not reimbursed for it. But if you are insured and do not file a timely claim, you can't take a deduction. For nonbusiness assets, the loss is the smaller of the property's income tax basis or its decrease in value, less whatever your insurance pays. Of course, only itemizers can claim a deduction for nonbusiness property.

There are further limits. Each loss is first reduced by $100, and the balance is then deductible only insofar as it exceeds 10 percent of adjusted gross income. The limits used to be more generous; today insurance is a wise investment. Owners of business assets get a better deal. The $100 reduction is gone, as is the 10-percent-of-AGI floor for the deduction, and non-itemizers can claim losses. There are special rules for losses in areas that are presidentially declared disaster zones.

Losses this year can be deducted on either a 2014 or 2015 tax return, whichever is more advantageous. If you have already filed your 2014 return, you can amend it and get a refund from the IRS. (You can find those disaster zones at www.fema.gov/disasters.)

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University. He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

nickersonpa.com