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Found an exposed wire from an old landscape light in the yard that is tripping a breaker. Can I just cap it?

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If it's no longer in use, you really should remove it, or at least disconnect it from the "input" (house electrical) side. Without a fixture present, some person (perhaps even you, if you forget about it) might dig in the yard with no thought of a (sounds like poorly buried if it's exposed, thus probably unmarked as well) wire, and cut into it with a shovel. In which case, it's far better if it's not energized.

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If it not easily possible to disconnect at house, you can terminate the connection in a burial rated junction box (such as a NEMA 6 box with liquid tight connectors). – HerrBag Dec 5 '13 at 19:42
That is a terrible idea - did you read my answer? Hmm, nothing electrical visible in this yard, let's have little Johnny dig up the gardens with his nice sharp spade! Hm, Johnny's never been late for dinner before, I wonder where that kid is...? – Ecnerwal Dec 5 '13 at 22:25
That could have happened before when there was a light attached. Mains lighting shouldn't be used in the garden it should all be low voltage. Hopefully the original cable is buried deep. But I agree, disconnecting at the source (inside the home) is the best option. – Matt Dec 5 '13 at 23:20
Given the combination of "tripping a breaker" and "found an exposed wire" I doubt it's either low voltage or buried deep. – Ecnerwal Dec 6 '13 at 3:14
@Ecnerwal Why are you digging with an all metal shovel, barefoot, in a puddle? – Tester101 Dec 6 '13 at 14:40

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