| [College of ACES] | [University of Illinois] | [Illinois CES] |
A client has a large oak that was uprooted by the recent hurricane. This
tree had been given an award of recognition by a county wide treasure
tree program that sought out trees notable due to size or historical
significance. The tree was growing on a lot adjoining the clients
residential lot. Both lots are owned by the client. He has asked
whether the tree can be declared as a casualty loss for income tax
purposes.
My question; I am comfortable with declaring the clean-up costs and
corrective pruning to trees damage by the uprooted tree as an indication
of the loss in fair market value. Will the IRS recognize value
attributable to the award status of the tree in a determination of
whether to declare the additional cost of replanting. If so, will they
recognize only the value of the largest commonly transplantable size, or
a trunk replacement calculation? This all depends, I guess, on whether
the award status of the tree appreciably increased the fair market value
of the property, and by how much? This, I assume would require a real
estate appraisal.?
And then there is the question of the two lots. I guess its possible
that the loss of the tree on the adjoining vacant lot could negatively
affect the value of the residential lot as well as the vacant lot. Here
again, the need for a real estate appraisal???
How does one find a real estate appraiser with experience in these
things? My experience here is that the real estate appraisers assume
that the value of the landscaping is a wash when comparing similar
properties within a neighborhood; i.e. the differences in landscaping
between properties within a neighborhood does not appreciably affect
differences in overall value between the properties. Either that, or
they are accustomed to appraising timber value on farmland. There is a
lot of development eating up farms around here.
Thanks for any insight you may be able to provide.
Keith Kriet
919.851.3340
TreeRx@ipass.net