Ash Management Guide for Private Forest Landowners

Chapter 7Other Implicationsof EAB andAsh TreesFLegal & Financialalling dead trees may injurepeople or damage vehiclesand equipment, so cut downhazardous trees along trails and roads.Such actions will reduce the chances of anaccident occurring which may result in alawsuit that seeks a damage payment.The loss of trees killed by EAB doesnot constitute a casualty loss reportableon income tax returns. A casualty lossmust be sudden and unexpected, but infestedash trees may live for several yearsand their death is expected.If you are managing your woodlandas a business or investment, then you mayhave inventoried your timber near thetime it was acquired and set up a timbercapital account showing the timber volumeand the cost you incurred to acquireit. When trees are killed by EAB, yourvolume is reduced, but your cost basis fortimber will remain the same.Your depletion unit will rise, however,since you have a lower volume over whichto spread your cost basis. A depletionunit is the cost per unit of timber (cordsor 1000 board feet) that you incurred toproduce your timber. When you sell timber,you can deduct a depletion allowancefor the volume sold.Ash log withEAB larval galleriesPhoto: MN Dept. of Agriculture/Mark Abrahamson56