A quick question for maichele: Not knowing the amounts (also remember that your insurance deductible should be included in form 4684), you might want to consider suing your insurance company. I'm in that process now. For a lot of people, just having a lawyer send the required intent to sue notification though the state is enough to get some action. Almost anylawyer will take the case as the one-way attorney fee change does NOT impact any Ian claims, as they are based on policies written before SB-2A was signed. So if you have a case, you won't pay for your lawyer. I'm in the process now.
And if they do come back with some more money, you just claim it as 'other income' in the year you receive it.
On to another issue maichele brought up... why do you think you need to list everything? In section A, type of property, you only need to enter something like "single family home" or "detached garage" or "dishwasher" "personal possessions (clothes, cookware)." If the IRS wants a detailed list, just have a list or photos stored online.
The instructions for the form say exactly what you can't include in your loss:
Losses You Can't Deduct
• Money or property misplaced or lost.
• Breakage of china, glassware, furniture, and similar items under normal conditions. (Ian was not "normal")
• Progressive damage to property (buildings, clothes, trees, etc.) caused by termites, moths, other insects, or disease.
• A decline in market value of stock, caused by disclosure of accounting or other illegal misconduct by the officers or directors of the corporation that issues the stock, that was acquired on the open market for investment.
You may be able to deduct it as a capital loss on Schedule D (Form 1040) if the stock is sold or exchanged or becomes completely worthless. See chapter 4 of Pub. 550, Investment Income and Expenses.
