Steve Braun wrote:

- quote -

I noticed this post was getting a little stale.

I don't believe you have a deductible loss relating to the
tree removal.

The identifiable event that meets the definition of a
casualty is the sudden falling of the two 50' branches
during the storm. The tree itself appears to have been
damaged some time ago by a lightening strike and has
probably been suffering progressive deterioration (not a
deductible event). I don't think you can tie the removal of
the tree to the current identifiable event of the storm.

The next question to be asked is whether the tree removal
can be construed to be a capital improvement to the property
and thus an increase to your cost basis. Based on the facts
presented, that does not appear to be the case.

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After dropping two 50 foot branches in a severe storm, I
chose to have a 100 foot Eucalyptus tree removed. When
taking it down we discovered it had been damaged by
lightening. The arborist concluded that the previous
lightening damage was responsible for weakening the tree. My
costs for tree removal were $3000, property damage caused by
falling branches was another $700. I received $1700 from my
insurance company. Can I claim a $2000 loss on this? Or can
I claim the decrease in my property value caused by the loss
of the tree (minus what I received from the insurance
settlement)?

Thanks

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >