Claiming landscape loss on taxes task for pros
RICKY THOMPSON

When it comes to acceptable techniques and methods for valuing l a n d s c a p e tree loss for federal income tax deductions, there are hardly any definitive languages available from the tax law or the rules and criteria by the IRS.

Analysis and appraisal of landscaping and real estate is complex and requires professional training and experience. The best course of action or defense a taxpayer can use is to work with a professional (real estate appraisers and professional arborists) and diligently document the value determination in a detailed and accurate manner.

The income tax law for a casualty loss deduction requires that the amount of deduction is limited to the smaller of (1) the decrease in fair market value

FMV) before and after the storm or (2) the adjusted basis of your property. Salvage sale further reduces the deductions allowed.

If your landscape trees have zero basis, there is no need to hire

professional appraiser since there will be no casualty loss deduction in that case. Also, when salvage sale income exceeds the adjusted basis, there will be no need to hire professional appraisers since you have a taxable casualty gain, instead of a loss.

A real-estate appraiser as well as professional arborists may be necessary. Trees and shrubs on a residential property that are destroyed must be appraised together with the real estate. Business property must separately value the trees and the building. To find professional arborists, go to: www.asca-consultants. org.

Ricky Thompson, the Texas Cooperative county extension agent, can be reached at 384-3721.