During Hurricane Floyd, I lost a 75' Ash tree. The creek overflowed and saturated the ground containing the roots, and it fell. I was told that the value of the tree could be deducted as a casualty loss. I contacted Penn State School of Forest Resources and was sent a workbook for the trunk formula method (1993, 8th Ed. ISA). I am missing two pieces to complete the formula. The Basic Price and Species Rating. I live in Southeastern Pennsylvania, if that helps. Any thoughts would be appreciated.

Reply to post by Phillip Salemno, on February 18, 2000 at 14:12:41:

Phillip, you're missing one other, more important piece of information. The IRS explicitly does not regognize the Trunk Formula Method of tree appraisal and may not recognize other methods that value the tree separate from the land. You might slip it through if not audited or questioned, but if the return is scrutinized it will not stand. IRS wants to see the difference in value of the entire real estate immediately before and after the casualty (unless it's business property). I think you want to look at IRS Publication 547.