Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss.
Amount of loss.
Figure the amount of your loss using the following steps.
1. Determine your adjusted basis in the property before the casualty or theft. In your case how much you paid for the trees and if you paid someone to plant them.
2. Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. Their FMV would be zero and they no longer exist.
3. From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
Clean-up
Cost of cleaning up or making repairs. The cost of repairing damaged property isn't part of a casualty loss. Neither is the cost of cleaning up after a casualty. But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. The repairs are actually made. The repairs are necessary to bring the property back to its condition before the casualty. The amount spent for repairs isn't excessive. The repairs take care of the damage only. The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty.
Landscaping. The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. You may be able to measure your loss by what you spend on the following. Removing destroyed or damaged trees and shrubs, minus any salvage you receive. Pruning and other measures taken to preserve damaged trees and shrubs. Replanting necessary to restore the property to its approximate value before the casualty.
In TurboTax (for personal losses):
Go to Federal Taxes
Deductions and Credits
Scroll down to Other Deductions and Credits
Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss.
Amount of loss.
Figure the amount of your loss using the following steps.
1. Determine your adjusted basis in the property before the casualty or theft. In your case how much you paid for the trees and if you paid someone to plant them.
2. Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. Their FMV would be zero and they no longer exist.
3. From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
Clean-up
Cost of cleaning up or making repairs. The cost of repairing damaged property isn't part of a casualty loss. Neither is the cost of cleaning up after a casualty. But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. The repairs are actually made. The repairs are necessary to bring the property back to its condition before the casualty. The amount spent for repairs isn't excessive. The repairs take care of the damage only. The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty.
Landscaping. The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. You may be able to measure your loss by what you spend on the following. Removing destroyed or damaged trees and shrubs, minus any salvage you receive. Pruning and other measures taken to preserve damaged trees and shrubs. Replanting necessary to restore the property to its approximate value before the casualty.
In TurboTax (for personal losses):
Go to Federal Taxes
Deductions and Credits
Scroll down to Other Deductions and Credits
The actual amount of your loss is the decrease in fair market value of your property. This is often difficult to determine, so you can usually use the repair and cleanup cost as an estimate of the loss of value, as long as you don't make your property better in the process. (For example, if you have a 30 year old roof that is damaged, and replace it with a brand new roof, the cost of the new roof is not a fair estimate of the loss of value due to the damage of the old roof.)
how would you enter the cost to remove downed trees from the hurricane? like if it cost $1000.00 to remove them and the cost wasn't covered by insurance how to you enter the $amounts when it asks you 1)Cost Basis 2)FMV before Storm 3)FMV after storm?