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 ans 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.
See the IRS link below.
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 ans 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.
See the IRS link below.
As this reply to your question wasn't really helpful how exactly did you answer the questions asked in turbotax for 1)Cost Basis, 2)FMV before the Storm 3)FMV after the storm in relation to the $7000.00 you spent on the tree removal? im in the same boat not sure how to enter it since its a expense and not an item you value
CPA told me that clean up after a disaster can’t be claimed without a loss. My trees were from the woods. I didn’t plant nor replace the trees. No landscaping involved.
Then it is not deductible, unfortunately. They weren't trees that you farmed and sold, I take it.
everything ive read says if you have residential trees you lost, that you had to pay money to have removed and hauled away from a Hurricane the the $$ spent to do this can be deducted , is that not true now?