I purchased a condo in Gulf Shores, AL in Jan 2010. The value of the property has dropped in no small amount due to the oil spill situation. Can this loss of value be claimed on my taxes? I do not rent the property, so I don't have a claim in that way, but I do have an appraisal when I bought and a new appraisal last week.

“ Can this loss of value be claimed on my taxes?”----> As the property is your personal-use property, you can deduct the lesser of the difference in the fair market value of the property before and after the casualty or your basis in the property. The deduction is then reduced by any payments or insurance proceeds you have received or expect to receive( if applicable). However, you cannot deduct more than its cost (original)invested in the property. You must deduct $100 from each casualty loss deduction and deduct an amount equal to 10 percent of your adjusted gross income from all casualty loss deductions claimed. The casualty loss deduction should be claimed in the tax year it occurred. It can be claimed on either IRS Form 4684 and Schedule A (personal use property) line 20.