"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

Reg. 1.165-7(a)(2)(ii) states:

(ii) The cost of repairs to the property damaged is
acceptable as evidence of the loss of value if the taxpayer
shows that (a) the repairs are necessary to restore the
property to its condition immediately before the casualty,
(b) the amount spent for such repairs is not excessive, (c)
the repairs do not care for more than the damage suffered,
and (d) the value of the property after the repairs does not
as a result of the repairs exceed the value of the property
immediately before the casualty.

--- end quoted text

So the answer I provided comes straight from the
Regulations.

Drew Edmundson, CPA (NC)

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D. Stussy wrote:
- quote -

Incremental cleanup cost is part of the deductible loss. I
have a next door neighbor who has not cleaned up an upended
poplar tree ball. His not cleaning up the mess not only
reduces the value of his property it reduces the value of
mine.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Drew Edmundson wrote:
- quote -

I would disagree with cleanup costs on the same grounds as
replacement and repair costs do not come into play.

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Frederick Jorden <fejcpa[at]erols.com> wrote:

- quote -

A timber consultant will have access to standard values for
trees based on size, variety, etc. However the values you
are looking for are the FMV of the entire property before
Isabel and the FMV of the entire property after Isabel. By
entire property I mean the land, house, garage,
outbuildings, landscaping, etc. IOW the appraised value a
real estate appraiser would give to a mortgage company.

I spoke to several appraisers after Hurricanes Fran, Floyd,
et al and most said the loss of a few trees (varies based on
the number of trees originally on the land, acreage, etc.)
usually had very little impact on the overall FMV.

The cost of cleanup, when paid, can be used as a measure of
the loss of FMV *if* nothing else is available.

Drew Edmundson, CPA (NC)

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Hurricane Isabel caused significant losses by cutting a
swath of trees throughout Virginia. I have been looking for
some simple rules of thumb to estimate the value of trees
downed by this storm. Many insurance carriers do not cover
the cost in these circumstances and most inland property
owners do not have hurricane or flood coverage. Tree
removal and stump grinding costs can be quite high, but the
number of qualified contractors is quite limited so many
folks have not had the work done yet if they can put it off.
I have seen some statements that landscaping can account
for 5 to 15% of a properties value. Any help would be
appreciated.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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