The Lone Star Tree Czar, your #1 Tree Service and Emergency Tree Removal Service in Spring, TX, has some helpful tips for you. Shade trees and landscape elements that are damaged by the storm may negatively affect the value of the property. Besides, the out-of-pocket expenses for repairing those damages might be huge. Also, there are costs involved in the removal and restoration of the elements. However, there might be some relief as the federal income tax allows homeowners to recover some of their losses and expenses through a casualty loss tax deduction. In this article, we will discuss how to avail yourself of the tax deduction for storm damage.

Five Stage Process of availing tax deduction for storm damage

• Documentation of damage is the first step for availing of the tax deduction. The landscape appraisal is necessary and for that, the appraiser will have to know some specific details like species, size, condition, location, and how the trees were placed on the property. Before the trees damaged by storms are removed, it is prudent to get a picture of them. If possible, keep the pictures of the trees before damage if you have them with you. Get the diameter or the circumference of the tree stem measured. If that is not possible, measure the stump diameter and take photos before grinding the stump.

• The second step for getting a tax deduction is to file an insurance claim if the storm damage to Houston is covered by your insurance. Loss of property that is not covered by insurance can be deducted as casualty loss from federal income taxes. Remember, if you are having a homeowners policy and your damage to the property is covered by the insurance, then failing to do so will also make you not eligible for filing for a tax deduction on storm damage. The amount that you recover from insurance plays a vital role in determining the tax relief you get due to storm damage.

• The next step would be to get in touch with your tax advisor. The tax advisor can assess the circumstance of the shade tree casualty loss and will advise you if asking for a tax-deductible is beneficial. You will also have to provide your tax advisor with the out-of-pocket expenses associated with the tree removal, cleanup, and restoration of the landscape on your property. Remember, that the tax deduction on storm damage is a marginal tax rate, therefore, if your tax advisor advises you against claiming the loss deduction as not beneficial, then it would be prudent to stop right there.

• The next step would be to determine the amount of loss. The amount of loss could be determined by putting together the cleanup and the restoration costs through an appraisal. The cost of restoration of the landscape is necessary because the destruction of the landscape after a storm might affect the fair market value of the property. However, the costs of the cleanup and restoration must be documented in the form of legible receipts that could be produced when submitting the request for tax reduction. If the insurance covers a part of the loss, the tax deduction must be reduced from the amount received.

• The final step is to do an appraisal from an arborist. The appraisal of an arborist can be divided into three parts: the cost, the sales, and the income. The appraisal of an arborist is based on the species of the tree that had been damaged, the condition of the tree after damage, and finally the location and the placement of the tree that is to be removed. The appraisal done by the arborist is part of the cost of how the tax return is prepared. During the audit, if it is found that the appraisal done by the arborist is inappropriate then the IRS can reject the deduction of loss which includes the cost of the appraisal.

As the appraisal of the arborists plays an important role in asking for a tax deduction, it would be best to hire the best emergency tree removal service, The Lone Star Tree Czar. We are your #1 Affordable Tree Service in Spring, TX.