Interested in the IRS guideline Richard (MI) talked about in the post from MYOB about trees.

Previous post from MYOB Trees @ 500K myob[GA] Nov 19, 2022 8:14 AM

So my sister has way too many trees in her yard (about 2-3 acres). Provides lots of shade but not much grass growing sun.

Question is – If I were to help her cut some of the trees down can she deduct the value of the trees as Richard is alluding to.

In the post from MYOB Richard said “Don't forget to deduct the value of the lost trees in taxes. Trees have value and if you had a loss, you can deduct it. Not only actual loss but future loss as well every year as they provided value/shade. THERE IS AN IRS GUIDELINE FOR THIS.

Question #2 How do I find the IRS guidelines. I know "Google, but I am not good at that. Can someone give me the guideline number?

If you can stand an IRS audit-- deduct tree value from your rentals!!!!

I do believe you can do it-- but to me it's like making an insurance claim--- is it worth the possible effects?

I think that applies to trees you want and that get lost in a storm. The removal cost might also be deductible but only for storm lost trees.

Removal cost for trees that you remove because you don't like them would probably go onto the cost basis as a sort of "lot preparation" cost. If that house is owner occupied, there are no deductions for maintenance.

I wouldn't risk trying it. I suggest that you consult a good tax accountant before you do.

I've had valuable storm lost trees at a rental, and all I deducted was the removal cost.

Mike, I think that she can only deduct in the case of theft or casualty loss, neither of which applies to your sister as an owner occupant.

Mike SWMO,

Mike, SWMO, that's excellent that she has many trees. Lawn grass is only useful for people and pets to run around on, but absolutely no value to birds, insects, ya know, the little things that run the world. Now, if there is mostly non-native stuff in there, well, then that also provides no food/ habitat for insects, birds.

An excellent Christmas gift for your sister might be Dr Doug Tallemy's book, Bringing Nature Home.

If you are going to remove trees, please, please, please start with the invasives: buckthorn, alianthus, Bradford (Callery) pear, et cetera. Those aren't bad plants, in their home region, where wildlife evolved WITH those species, and can keep them in check. But, here where nothing can eat them without serious ill effects, they can take over, eliminating the native wildlife.

Mike,

Tree removal is deductible as a casualty loss. But, until 2026, casualty losses are only permitted in a federally declared disaster area. Consult with your tax experts to see if there are other situations where a deduction may apply. She may have to hire a professional or third party in order to get a deduction.

Have you considered selling the trees for profit as opposed to trying to get a deduction? I frequently pass by a home in a very nice neighborhood which have had few sales. Passed it again last night and thought of you. All of the homes had yards full of mature trees on one to two acre lots. A few years back, one home was sold to a probable non-owner occupant. The yard full of trees was promptly harvested. We assumed the trees were sold off for profit, as opposed to being a landscaping choice.

We assume it was a non-owner occupant who sold the trees for profit because bare stumps were left for years, though they finally got rid of them. The home also looked like it was a place to house temporary workers, based on the number and variety of trucks that have been parked outside since it was purchased. The completely bare yard with absolutely no landscaping stands out like a sore thumb in the middle of the otherwise well kept neighborhood.

Your state may provide a list of foresters who purchase trees. Urban forestry is apparently a thing.