Can I Deduct Tree Removal on Taxes? Three Things to Consider
Tree removal can be costly. Depending on the size of your tree, you can expect to pay anywhere between $150 and $1500 to remove a single tree. And once you remove the tree itself, there’s the additional expense of stump removal to deal with. So if you find yourself in a position where you need to get a tree removed from your property, you might also find yourself asking, “Can I deduct tree removal on taxes?” The answer to this question depends on a number of factors, such as the type of residence, who removed the tree, and your reasons for removing the tree in the first place. Disclaimer: This article is meant for informational purposes only. It is not intended to provide tax or accounting advice. You should consult your own tax and accounting advisors before attempting to claim a project on your tax return.
Type of Residence
Trees removed from your primary residence are rarely tax-deductible. If the tree is removed from an investment property, such as a rental home, then you are more likely to be able to claim the removal as a tax deduction.
Reasons for Tree Removal
If you want to claim a tree removal on your tax return, then you must have a clear and specific reason for removing the tree. Common reasons for tree removal that can be tax-deductible include:
- A tree causing damage to your property
- A tree that sustained damage during a storm
- Certain types of man-made damage to a tree (e.g. if a tree is hit by a vehicle)
Is Tree Removal Considered Home Improvement?
In most cases, home improvements add to the tax basis of your property. But does tree removal count as a home improvement expense? To answer this question you need to ask, “does removing this tree increase the value of my home?” The IRS only considers projects to be home improvements if they meet this criterion. As such, if the project does not increase the value of your home, it is unlikely to add to the tax basis of your home. This also means that some tree removal projects are considered home improvements, while some aren’t. To be sure, it’s best to consult a tax professional about your specific project.
Who Removed the Tree?
If you fell the tree yourself, then it is unlikely that you will be able to make a claim on your tax returns. To claim the tree removal as a tax deduction, the tree must be removed by a professional.
Next Steps for Claiming Tree Removal on Your Taxes
So if you’re wondering “can I deduct tree removal on taxes”, here are the basic guidelines for what to expect when you file your tax return. To make the most out of your tax deduction, make sure to speak with a qualified tax professional. Similarly, if you want to make the most of your tree removal, you should work with a professional tree service. Tree removal is risky and requires experience, professional equipment, and the training to wield it. Make sure your tree project is done right, and contact Evergreen Tree Services for your tree needs.