Tree removal as a capital improvement is considered an expense, not an investment. While tree removal can increase the value of your property, it doesn't. While removing trees can increase the value of your property, it doesn't add value in the classic sense. Capital improvements are generally considered a permanent addition to a property that will remain functional for a long time.
If tree removal were part of a landscaping effort, then it would be capitalized and depreciated. Whether improvements are made to a home or business, all capital improvement projects are tax-deductible. However, repair and maintenance projects are not. Especially for larger projects, it's a good idea to determine beforehand whether or not a landscaping project is a capital improvement.
Removing trees from your yard also helps with overall property maintenance, keeping it away from dead branches and other decaying tree material. While tree removal might retain the value of the depreciable structure, removing the tree doesn't really add value (in a sense) to anything. Tree removal can certainly be considered a capital expenditure depending on the purpose of the tree. If the end goal is to increase the overall value of your property or home, then it is definitely a smart investment. For those unsure if they should remove a tree or not and are looking for an expert opinion, they should consult an experienced service provider like Tree Lopping Townsville. With their knowledge, skill and expertise combined with a comprehensive assessment of the tree, they’ll be able to provide you with sound advice about whether you should remove it or not.
Townsville Tree Lopping Services
30 Sunderland St
Garbutt QLD 4814
(07) 4243 4100