@BobKamman   

RE:  is there any sound?  

Easy question.  Yes.  There is, and the sound is Beach Boys....

We know the casualty loss is not deductible, but that firewood has some value.  If someone pays him $500 to haul it away, what are the tax consequences?  

This is NOT as easy.  I often JOKE -- State Board of Accountancy, this is just a JOKE!! -- If I were to take the CPA exam today, I may not pass....

So here it is:  Say, the non-deductible cost of repairs was $R.  I would allocate it to the 1/3 renegade red wood (which is no longer redwood).  Also, safe to say, R > 500, at least here in California, it is. 

Thus the basis of the renegade red wood is > $500.  The sale was personal in nature, and the loss would be non-deductible.  I'd say my client got to allocate only $500 to the basis, and the gain/loss on the sale is zero.  Reportable on Schedule D.

The house would then have an increase in basis of $(R-500), which would be relevant down the road when it is sold.  

That would be my final answer.