Tree Removal Expense

[Phillbunch]

We had a tornado in 2024 that knocked down two trees on our residential property.  There was no real or personal property damage, but the cost of cutting up and removing the trees and stumps was about $3,000.  FEMA designated/declared our area as a federal disaster area.  Can I deduct the tree/stump removal expenses on my federal tax return?

[Mike9241]

Maybe.  The issue is that your loss may not be what you spent on removing the tree but the value of your property before and after the tornado toppled the tree, less any insurance reimbursement, whether applied for or not. 

if there was a decline in value mot covered by insurance you can claim a casualty loss by completing Form 4684 = Casualty Loss Section A

[SabrinaD2]

Yes, you may be able to deduct the tree and stump removal expenses on your federal tax return if your area was declared a federal disaster area by FEMA. 

Important Note:

When you have items that are lost or damaged as a direct result of a natural disaster, and you live in a federally declared disaster area, you may be able to take a tax deduction for the value of the property that's not covered by your insurance. As also noted by @Mike9241

Here’s how it works:

• Casualty Loss Deduction: if your area was declared a federal disaster area, you can claim a casualty loss deduction for the expenses related to the tree and stump removal. This applies even if there was no damage to real or personal property, as long as the removal was necessary due to the disaster

Next Steps:

1.  Check if the Tornado was Declared a Disaster Area:

• You can verify if your area was declared a federal disaster area by FEMA by visiting FEMA's Disaster Declarations page.

2.  Enter Loss on TurboTax:

• To enter your tree and stump removal expenses as a casualty loss in TurboTax, follow the instructions provided on TurboTax's support page.

[fanfare]

If a tree falls on your property it is not a casualty loss.

It is only if your home was damaged.

@Phillbunch