Special rules for qualified disaster-related personal casualty losses

(a) In general If an individual has a net disaster loss for any taxable year— (1) the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of— (A) such net disaster loss, and (B) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in subparagraph (A)) as exceeds 10 percent of the adjusted gross income of the individual, (2) in the case of qualified disaster-related personal casualty losses, section 165(h)(1) of such Code shall be applied to by substituting $500 for $500 ($100 for taxable years beginning after December 31, 2009), (3) the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and (4) section 56(b)(1)(E) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under paragraph (3). (b) Net disaster loss For purposes of this section, the term net disaster loss means the excess of qualified disaster-related personal casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of such Code). (c) Qualified disaster-Related personal casualty losses For purposes of this section, the term qualified disaster-related personal casualty losses means losses described in section 165(c)(3) of such Code which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such qualified disaster.