Storm Damage Cleanup

[bhh]

So Sandy did a number on our recently purchased property in upstate New York and I have been considering purchasing a B-series Kubuta to help manage the 40-acre woodlot. I came across the following article and was wondering if anyone knows if a tractor (and chainsaw) is purchased specifically for storm cleanup, if it would be tax deductible under these regulations since our area was declared a disaster area. I have an email into my accountant but they are dealing with their own storm cleanup and I am not sure how soon they will be able to get back to me and was curious if anyone else has come across this.



Storm Damage? You Might Qualify for Tax Breaks - Kiplinger

 

[Bee950]

Since everything you read on the Internet is true, I say you are covered and you should not only write off the tractor, but the chainsaw, driveway, house and everything else you do to the property!

You are welcome.

 

[bhh]

SWEET! Let's make it an L-series then!
Actually my accountant wrote back and said no, not for the tractor and chainsaw

Alternatively, the cost of cleaning up and restoring the residential property, including trees and other landscaping, to its condition before the casualty may be used as evidence of the decrease in fair market value, if the clean-up, repairs, and restoration are actually done, are not excessive, are necessary to bring the property back to its condition before the casualty, take care of the damage only, and do not cause the property to be worth more than before the casualty. For example, if these requirements are satisfied, the cost of removing destroyed or damaged trees (minus any salvage received), pruning and other measures taken to preserve damaged trees, and replanting necessary to restore the property to its approximate value before the casualty may be acceptable as evidence of the decrease in fair market value caused by the casualty. You may not include in your cost of cleaning up and restoring your property the cost of purchasing any capital asset, such as a compact loader or tractor, or the value of the time you spend cleaning up your own property.

 

[vwnotrunning]

can you deduct the costs to rent the equipment? Rent from you BIL / Neighbor / etc?

 

[smcenta]

any unreimbursed loss it a write off. for example damage not covered by insurance. we lost everything to a natural disaster some years ago and found out the hard way we were under insured. was able to write off the loss for the next 3 years. Sorry for what you are going through. i know how it feels. make sure you keep good records and keep all receipts even if they are handwritten receipts for rentals from private people