Uncle Sam may help cover the loss when you suffer property damages, but you have to follow the rules for a deduction.

You can deduct the losses resulting from disasters like floods and hurricanes to the extent not reimbursed by insurance. But if you have insurance and don't file a claim, you can't take the deduction. However, in a recent case, when a claim was filed but the insurer denied payment, the court allowed the deduction.

There are two offsets for personal losses: first the loss is reduced by $100 per incident; the balance is deductible only insofar as it tops 10 percent of adjusted gross income. Only itemizers can claim such a deduction on non-business property. It's somewhat easier to deduct casualty losses on business property: the $100 and 10 -percent offsets do not apply, and even those who do not itemize can deduct. There are special rules on losses in presidentially declared disaster areas.

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