Tree Removal: expensed or capitalized

[Ian Montanio]

I want to remove a tree that is hanging over a rental property to prevent any future damage.  Can I expense this cost as routine maintenance or is the cost capitalized?

[Michael Plaks]

@Ian Montanio

You don't have to wait until the other property is placed in service. Just relocate the tree to the other side of the fence before cutting it down - and you're in business. (Just kidding, of course.)

Seriously though, since the cost of removing a tree is under $2,500, you can simply include a "Safe harbor de minimis" election with your tax return and avoid the entire debate.

Click here for an explanation, but skip the tedious details and just scroll down to "How do you elect..."