Research Problem 3. Esther owns a large home on the East Coast. Her home is sur- rounded by large, mature oak trees that significantly  increase the value of her home.      In August 2014, a hurricane damaged many of the trees surrounding her home. In September 2014, Esther engaged a local arborist to evaluate and treat the trees, but      five of the largest trees were seriously weakened by the storm. These trees died from disease in 2015. Esther has ascertained that the amount of the casualty loss from the   death of the five trees is $25,000; however, she is uncertain in which year to deduct      this loss. Discuss whether the casualty loss should be deducted in the calculation of Esther’s 2014 or 2015 taxable income.

Partial list of research aids:

Reg. § 1.165–1.

Oregon Mesabi Corporation, 39 B.T.A. 1033 (1939).