I know that IRS does not recognize the Trunk Formula Method for casualty loss of trees, etc. Does that also apply to the Cost of Cure approach to valuation.

Reply to post by Larry Loiseau, on March 19, 2003 at 09:43:23:

Larry wrote: I know that IRS does not recognize the Trunk Formula Method for casualty loss of trees, etc.

I have heard of one case in Florida where it was denied~6 yrs ago. If there have been cases since where tfm survived audit, that would be news.

Larry: Does that also apply to the Cost of Cure approach to valuation.

Look below for a discussion. Short answer might be: ask a tax specialist. Better yet, ask ten and post the range of responses that you get. That'd be interesting.