Toss it. Sorry, but these are not houseplants and will not survive in indoor conditions.....I'm surprised it's lasted this long!! The white fuzzies are not a good sign - could be mealy bugs or adelgids - and the drying, dropping of needles (or even holding dead needles) is a sign the tree is on its way out.

btw, these are sold at the holidays as disposable tabletop decorations.

Thank you! I never knew that, but I'm not gardener at all. Just for interest sake, what makes them disposable? I didn't want to plant it outside because we are renting at the moment, in the process of building our own home and wanted to plant it in our own yard.

Because they do not live indoors and are just sold as a decoration. And in many places, one is unable to plant outside easily in the dead of winter....and planting outside (or at least moving outdoors but in suitable temperatures) as soon as the holiday is over is the only way in which they will survive.

Great, thank you so much for your help!