I have 150 acres of forest land that sustained extensive tree damage and loss due to Hurricane Idalia. The trees were natural growth and came with the property when I bought it. The property is in a federally declared disaster area. I am not in the timber business. The downed trees are preventing me from maintaining the property and interfering with my use of the property. How can I place a value on the downed/damaged trees? The overall value of the property was not affected significantly as only a small fraction of the trees suffered damage, but those that were lost do have a value. Would the cost of cleanup to restore the property to its before the storm condition be the basis for casualty loss claim?
1. Your value of the trees can be any reasonable method.
2. The cost to restore the property value is a reasonable method. So, yes, that would be a good basis for your claim.
See Topic No. 515 Casualty, Disaster, and Theft Losses - Internal Revenue Service for full details. Which includes
If your property is personal-use property or isn't completely destroyed, the amount of your casualty loss is the lesser of: