I own a home--my personal residence--north of Indianapolis on a tributary of the White River. I bought this home because it was located on the river where my family could boat and fish--probably not swim, too muddy. Due to some industrial pollution of the river, thousands of fish were killed in the White River and now nobody wants to get close to the water. I figure that the value of my property has dropped dramatically. I purchased the home for $500,000 five years ago and now it may be worth only $300,000. The polluting company was penalized by the EPA, but we didn't get anything, and my lawyer doesn't think we can sue. Can I write this $200,000 loss off? Provide evidence using the tax code.