Tree removal a deductible expense?

[sanfanciscotreat]

I recently had a large tree fall into my yard from the edge of my woods. Will the cost of removing the fallen tree be a tax deductible expense even though no structure was damaged?

[pb4uski]

Off-the-cuff I would say no, it is the same as any other repair/maintenance item. Just like if you fixed a broken window that would not be deductible either. Sorry.

[Senator]

Not unless you start a landscape business.

[NW-Bound]

It may be allowable. The IRS says that permissible deductible casualty losses include storms among the following lists:

• Car accidents (but see Nondeductible losses next for exceptions).
• Earthquakes.
• Fires (but see Nondeductible losses next for exceptions).
• Floods.
• Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Pub. 547.
• Mine cave-ins.
• Shipwrecks.
• Sonic booms.
• Storms, including hurricanes and tornadoes.
• Terrorist attacks.
• Vandalism.
• Volcanic eruptions.

If the tree died of natural causes, then it is not allowed.

For more, see Publication 17, Chapter 25: https://www.irs.gov/publications/p17/ch25.html

[pb4uski]

First, it is hard to determine what the OP's damages (diminution in value) was... but for discussion purposes let's assume that you could use cleanup costs.

OP will not get a deduction unless removal costs exceed 10% of AGI +$100.

Quote:

Example. A hailstorm damages your home and your car. Determine the amount of loss, as discussed earlier, for each of these items. Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Single event. Generally, events closely related in origin cause a single casualty. It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your AGI. Apply this rule after you reduce each loss by $100. For more information, see the Form 4684 instructions. If you have both gains and losses from casualties or thefts, see Gains and losses , later. Example 1. In June, you discovered that your house had been burglarized. Your loss after insurance reimbursement was $2,000. Your AGI for the year you discovered the theft is $29,500. You first apply the $100 rule and then the 10% rule. Figure your theft loss deduction as follows. 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You don't have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your AGI ($2,950).

[NW-Bound]

Yep, that 10% deductible just nips it in the bud right there.

[DrRoy]

Quote:

Originally Posted by NW-Bound Yep, that 10% deductible just nips it in the bud right there.

+1 Even if it was deductible, you would not meet the 10%.

[sanfanciscotreat]

Definitely not meeting the 10% of AGI for this tree removal.

[pb4uski]

I assume this is your personal residence and not a rental property.

[rodi]

Quote:

Originally Posted by pb4uski I assume this is your personal residence and not a rental property.

I was wondering the same thing. If it's a rental property it's deductible...

[mamadogmamacat]

I had storm damage this year. Check out IRS publication 547 for the details of what is deductible and the income limits. There are some comments in it regarding rental property damage, but it seems to mainly address owner occupied property. And yes, there is the 10% AGI + $100. dis allowance.

[jessica7894]

Quote:

Originally Posted by pb4uski I assume this is your personal residence and not a rental property.

Yeah. I think so.

[jebmke]

Did it make a sound?

[nativenewenglander]

Quote:

Originally Posted by jebmke Did it make a sound?

LOL.....
We run a small business in the barn on our property, so could take a partial deduction on it. I think, as others said, if it the property doesn't have some commercial use to it, no. You could ask your CPA, if you use one otherwise it seems risky to get flagged for an audit, considering the amount you'd save.