Solved: Can I deduct trees taken out in a storm. 1 400 yr old Oak and 5 other large trees.
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Can I deduct trees taken out in a storm. 1 400 yr old Oak and 5 other large trees.

The huge oak in front was an anchor for the property.  5 other trees were taken down behind the house.  Insurance paid for the fence around the garden when a very large tree was thrown into it.  We were reimbursed for the fence and removing the trees from the drive but, nothing for the loss of the trees.
1 Best answer

Accepted Solutions
Level 5

Can I deduct trees taken out in a storm. 1 400 yr old Oak and 5 other large trees.

Yes, if you have a valuation for them and it is high enough.  When you lose an item due to an accident, theft, or act of nature, you may have a tax deduction for the value of the property that is not covered by your insurance.

The software will walk you through it, but here is how it works: Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A Itemized Deductions. 

  1. For property held by you for personal use, Subtracted any salvage value (zero for theft) and any insurance or other reimbursement from the loss amount.
  2. Then, subtract $100 from each casualty or theft event that occurred during the year. 
  3. Then, take that amount and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.
  4. That's the amount that goes on your Schedule A Itemized Deductions.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

More details can be found at this link  http://www.irs.gov/taxtopics/tc515.html

That said, the amount would have to be pretty large for you to be able benefit.  Also, you must file Schedule A as I stated above.  But, if you want to give it a shot in the Casualty and Theft section of the software, it wouldn't hurt.

How to enter it into TurboTax: While inside the software and working on your return, type casualty loss in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to casualty loss.  Select that to get to the general area. 


View solution in original post

2 Replies
Level 5

Can I deduct trees taken out in a storm. 1 400 yr old Oak and 5 other large trees.

Yes, if you have a valuation for them and it is high enough.  When you lose an item due to an accident, theft, or act of nature, you may have a tax deduction for the value of the property that is not covered by your insurance.

The software will walk you through it, but here is how it works: Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A Itemized Deductions. 

  1. For property held by you for personal use, Subtracted any salvage value (zero for theft) and any insurance or other reimbursement from the loss amount.
  2. Then, subtract $100 from each casualty or theft event that occurred during the year. 
  3. Then, take that amount and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.
  4. That's the amount that goes on your Schedule A Itemized Deductions.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

More details can be found at this link  http://www.irs.gov/taxtopics/tc515.html

That said, the amount would have to be pretty large for you to be able benefit.  Also, you must file Schedule A as I stated above.  But, if you want to give it a shot in the Casualty and Theft section of the software, it wouldn't hurt.

How to enter it into TurboTax: While inside the software and working on your return, type casualty loss in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to casualty loss.  Select that to get to the general area. 


View solution in original post

Level 15

Can I deduct trees taken out in a storm. 1 400 yr old Oak and 5 other large trees.

You must have before and after appraisals showing the value of your property is reduced due to the absence of those trees. Otherwise, IRS will deny a casualty loss for a downed tree.
They may deny it even with appraisals.
Dynamic Ads
v
Privacy Settings