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Timber Taxes

Started by GlennCz, August 05, 2005, 10:33:31 AM

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GlennCz

Is this true:
to qualify for capital gains on the income I receive from selling my timber I have to sell it "on the stump"(bid), rather than as a "share-basis" (ex. 60/40).     

Gary_C

You need to read Section 631(b) of the Internal Revenue Code. While I do not think that is true, I could not say for sure.

Stumpage payments are treated as capital gains even to the logger. However I do not know how a share payment is handled.

Never take life seriously. Nobody gets out alive anyway.

Ron Wenrich

Do you have a timber basis to start from?  You should have had a timber appraisal and inventory when you bought the property. Then you could allocate stumpage value, which you won't pay taxes.

Since you are doing the logging, I don't think you will have "timber tax", but more along the line of income. 

Have you ever talked to an accountant?  Look around, because most don't know much about timber tax or depletion allowances.
Never under estimate the power of stupid people in large groups.

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