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ballin
Level 1

Can I claim trees as a loss along with my house and contents due to a fire? They were valued at $60,000

 
1 Best answer

Accepted Solutions
KatherineC
New Member

Can I claim trees as a loss along with my house and contents due to a fire? They were valued at $60,000

Yes, you can deduct the loss.  The deduction would be the loss less any insurance reimbursement less a $100 charge per casualty.

Will the loss affect your return?  That depends on whether or not you itemize your deductions.

The loss will be calculated as the difference between the Fair Market Value of the property that was damaged before the fire and the Fair Market Value after the fire.  The Fair Market Value is what you could have sold the property for at those times.

Click on the search box in the upper right corner.  Type in “Casualty Loss” and click on the magnifying glass.  You should see a “Jump to” link as the first option.  Click on the Jump to link.  (See the screenshot below.)

  • You will be asked for a description of the Casualty
  • the date it happened
  • the property type (Personal property or Income-producing). 
  • a description of the property,
  • the date acquired,
  • the cost of the property and
  • insurance reimbursement
  • On the next screen, you will be asked what the property was worth just before the fire and immediately after.

Per the IRS link found here, "you must figure the loss on each item separately" if more than one item was damaged.   Then combine the losses to determine the total loss from that casualty or theft.” 

You can enter each item in Turbo Tax.  (See the second screenshot below)

You can find additional information about the Casualty Loss Deduction by clicking here


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2 Replies
KatherineC
New Member

Can I claim trees as a loss along with my house and contents due to a fire? They were valued at $60,000

Yes, you can deduct the loss.  The deduction would be the loss less any insurance reimbursement less a $100 charge per casualty.

Will the loss affect your return?  That depends on whether or not you itemize your deductions.

The loss will be calculated as the difference between the Fair Market Value of the property that was damaged before the fire and the Fair Market Value after the fire.  The Fair Market Value is what you could have sold the property for at those times.

Click on the search box in the upper right corner.  Type in “Casualty Loss” and click on the magnifying glass.  You should see a “Jump to” link as the first option.  Click on the Jump to link.  (See the screenshot below.)

  • You will be asked for a description of the Casualty
  • the date it happened
  • the property type (Personal property or Income-producing). 
  • a description of the property,
  • the date acquired,
  • the cost of the property and
  • insurance reimbursement
  • On the next screen, you will be asked what the property was worth just before the fire and immediately after.

Per the IRS link found here, "you must figure the loss on each item separately" if more than one item was damaged.   Then combine the losses to determine the total loss from that casualty or theft.” 

You can enter each item in Turbo Tax.  (See the second screenshot below)

You can find additional information about the Casualty Loss Deduction by clicking here


Jguo87
Returning Member

Can I claim trees as a loss along with my house and contents due to a fire? They were valued at $60,000

This is no longer current law as updated by the Tax Cuts and Jobs Act (P.L. 115-97) which amended IRC §165(h)(5) to say "In the case of an individual, except as provided in subparagraph (B), any personal casualty loss which (but for this paragraph) would be deductible in a taxable year beginning after December 31, 2017, and before January 1, 2026, shall be allowed as a deduction under subsection (a) only to the extent it is attributable to a Federally declared disaster (as defined in subsection (i)(5))." A Link to this statute is below.

IRC §165 

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