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Level 1

Hazardous tree removal on private property. can re write off cost

can i write off the expense
3 Replies
Level 7

Hazardous tree removal on private property. can re write off cost

The cost cannot be written off but can be added to the basis of the property as an improvement costs.

Level 7

Hazardous tree removal on private property. can re write off cost

At first glance, this question may not fit here, but bear with me. 

I had 15 trees removed around a rental house.  They weren't really close to the house (shrubbery) or a danger so I really can't expense them or depreciate them (although they did affect the general landscaping and the ability to grow stuff (grass) to solve an erosion problem, therefore maybe justifying depreciating the cost of the removal). Still thinking about how far I can stretch that into a depreciating expense....

As per IRS Pub 527 "Add your other land preparation costs to the basis of your land because they have no determinable life and you can’t depreciate them.

So, my question is, how do you 'add to the basis of my (rental) property land' in Turbo Tax?  Does TT need to know that my investment in the land just got bigger or do I simply stash that information away until I sell the property and have to figure capital gains?

Please let me know if this is better suited in a new thread....

Level 20

Hazardous tree removal on private property. can re write off cost


@stevekayak wrote:

So, my question is, how do you 'add to the basis of my (rental) property land' in Turbo Tax?  Does TT need to know that my investment in the land just got bigger or do I simply stash that information away until I sell the property and have to figure capital gains?


Actually, it is better suited in a new thread but, regardless, you do not need to add to the basis of your land in TurboTax as the program will do nothing whatsoever with that information.

 

You should, however, be tracking your basis outside of TurboTax (either using accounting software, a spreadsheet, or a facsimile thereof).