Various

[WhateverTax]

Q1)  I have a lawsuit, neighbor sued to remove trees.  Are tree removal contractor payments considered a loss that is deductible and if so then how/where do I enter into turbotax?  (Insurance company covered lawyer and other fees). What documentation do I need to keep for that lawsuit (court record or copy of suit)?  I purchased equipment to remove some of the trees on my own, is that purchase also deductible as part of that suit?  Costs for tree removal were incurred in 2021 but the suit wasn't closed until 2022, does this closing date affect the year for filing that deduction/loss?  In 2022 I will restore destroyed landscaping caused by tree removal, are those restoration costs also considered a loss associated with the suit and can also be deducted and would the split year deductions in 2021 and 2022 for the same suit raise red flags?
 
Q2)  I have a condominium rental unit that I am in the process of remodeling (long process on my own, as well as tree removal).  I didn't collect rental income in 2021 but have incurred material costs and some contractor costs in 2021 and have continued to pay HOA fees etc.   Am I allowed to post these costs against the condo in Form 8582 even though I have not collected income from that unit in 2021 or do I wait until 2022 tax year to post those expenses?  If posted in 2021 then am I allowed a net loss for the year or is there something special I need to do, some kind of deferred year thing and if so then how do I handle this in Turbo Tax? 

[ColeenD3]

1) If this is a personal deduction, it is not a loss. There are no criteria that meet the definition of casualty.

2) If this was attached to your rental property, then yes. but only if you held the property out for rent. It must have been advertised and available to be rented.

Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.