In Atlanta, tree owners considering removal must check city regulations before.

long-term capital gains tax rate for timber is 15 percent cut contract” (a Section (b) transaction) or byreported on the appropriateSchedule D, Capital (for taxpayers in the 10 or 15 percent ordinary incomeelecting to treat the cutting as a sale (a Section (a) Gains and Losses. Oct 14, Why Is Tree Removal Deductible? When you need to trim a tree because some of the branches are too long, that is counted as an improvement, so it is not tax deductible.

However, when you need to completely remove the tree because it is causing issues, then this is counted as repairs and maintenance, which makes it a tax deductible chore. The current tax laws provide a deduction for the loss of timber and landscape trees caused by casualty, provided such losses meet the deduction require-ments. Because of the complicated restrictions on the casualty loss calculation, if the timber basis is low or zero, there may be little or no deductions.

It is important that you have records to support your casu-alty loss deduction. Carefully prepare the File Size: KB. Tax Treatment of Tree Removal Costs Under Former Section The election to currently deduct tree removal costs that otherwise would be capital expenditures is no longer available because of the repeal of former § The proper tax treatment of tree removal costs was addressed by Congress in former §. Feb 05, If so, cutting down a tree is not deductible. If this is a rental house, it would seem that the cost of cutting down a tree would be ordinary and necessary.

But the problem with specific items such as this, is there can be exceptions based on the fact pattern.