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How do I determine the adjusted basis. The trees grew and were

 

Customer Question

How do I determine the adjusted basis. The trees grew and were cut by a logging company at our second home. How would I determine any loss - the cost to travel there to maintain the property?

Submitted: 364 days and 20 hours ago.
Category: Capital Gains and Losses
Value: $16
Status: CLOSED

Accepted Answer

Expert:  USTaxAdvising replied 364 days and 15 hours ago.

The adjusted basis would start with whatever you paid for the trees. It is then increased by any improvements made to the property/trees. (Such as fertilizer, pruning/spacing, etc.)

 

Travel to the property would not be an addition to basis but would be an annual deductible expense.

 

I don't anticipate that you will have many other additions to your cost basis.

 

I hope this helps, please let me know if you have any further questions.

 

Best regards,

Expert TypeAccountant
Category: Capital Gains and Losses
Pos. Feedback: 97.8 %
Accepts: 72
Answered: 4/24/2012

Experience: Professional in capital gains and finance related questions

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