Can I Deduct Tree Removal On My Taxes? (Find Out Now!)

Being a homeowner means that you will have a lot of responsibilities that we renters don’t have. One of the more important responsibilities, aside from property taxes, is the care and keeping of your property. An unkempt property can be an eyesore, but it can also pose a risk for people in and around your area. Such is the case with dead trees. But, did you ever wonder if you can deduct tree removal from your taxes?

You can deduct tree removal from your taxes depending on why you are cutting the tree down or removing the trees from your yard. Personal properties can deduct if it’s done for home improvement. Commercial properties can deduct if it is done to reduce or remove damage to the neighborhood.

Does this sound confusing to you? It baffled me, too. But, it makes sense when you look at the nuts and bolts of the matter. Or, at the very least, you will be able to deduct some stuff if you know what to look for. So, let’s do that.

Most of the time, tree removal is considered to be a repair on the property. After all, it’s done for a broken tree or a tree that died as a result of a pest swarm gone wild. It can put a serious risk to your home and local residents. This is considered a home repair if you have personal property, which means it is usually tax-deductible for the place where you live.

On the other hand, it can also be considered home improvement. For the IRS, the definition of home improvement is an expense that can help add value to your home. So, if it was done to improve your landscape, then it is not considered to be a legitimate write-off. If you are clearing the tree away to add space for an add-on that you want to rent, it might be a write-off.

If your trees died and it was due to fungus or pests, then you can’t claim an expense on your tax documents if it isn’t posing a major risk to neighbors or other property. Or rather, you can’t do it immediately. Rather, you can write it off as a cost when you sell the house. If your trees died as a result of a major weather disaster, you also might be able to claim a loss come tax time.

With that said, major losses like trees and serious home damage claims are something that you might want to discuss with an accountant or qualified tax preparer. More often than not, they will be able to guide you on the best course of action for both your long-term and short-term look.

This is a question we’re pretty sure many people hear come tax time, but it’s not a good one to ask. Most of the time, there are not enough receipts to make it possible to estimate the work done accurately. As a result of the risk that comes with the chance of “overestimating” the expenses, the IRS does not allow you to deduct a wage for work you do yourself.

Moreover, unless you are buying tools to fix your rental, you also can’t deduct the tools you use to do the work yourself. So, it’s best to avoid trying to do this yourself unless you own a home improvement company. (Hint: If you’re reading our how-to guides, we’re willing to bet you don’t have a business!)

The best way to maximize your tax benefits is to hire a professional tree removal service. Make sure to ask for a receipt after the work is done.

The IRS and taxes aren’t something that you should try to take a guess on. A single mistake can lead to dozens of losses on your tax filings, not to mention fines. At the very worst, you might end up with an audit. That’s why we at Upgraded Home strongly advise avoiding any questions or missteps in your filings.

If your tax situation is complex or you’re discovering information that doesn’t seem to make sense, then hit the pause button. It might be smarter to avoid mistakes and call up an accountant instead. Is this an easy thing to do? Not really, accountants are pretty pricey and it’s a pain to find one in a pinch. But, it can save you a ton of time and heartache in the long run.

Related Questions

Are medically necessary home improvements tax-deductible?

In the United States, our tax system is pretty strict. Thankfully, it’s not inhumanely cruel. The good news here is that you don’t have to go fully out of pocket for home improvements that improve mobility around the home. This can include things like lighting around the stairways, a security bar in the bathtub, a wheelchair ramp, as well as a van-accessible parking space.A good rule of thumb is that you can write off any improvement that you can get a doctor’s note proving that you need it. In some rare cases, this can even include things like whirlpool tubs.

How do you write off the loss of a tree?

Believe it or not, there are companies that can help you appraise the value of a tree. If your tree was young and fresh from the nursery, then it’s clear that it’d be around the same price as the nursery’s price tag. On the other hand, larger trees can vary greatly in valuation. It’s not unheard-of for an older tree to cost upwards of $20,000.If your trees were used in the commercial growth of fruit, then you can consider it to be a major business loss.

How do you deduct energy-efficient items?

Technically, most energy-efficient items aren’t deductible. Rather, they are considered to be a tax credit by the IRS. This is actually better than a deduction since it can actually be removed from your pre-tax income. No matter how you look at it, though, it’s always good to be green.