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Author Topic: Taxes on Timber sales  (Read 9799 times)

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Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #20 on: February 11, 2014, 04:03:21 pm »
For Immediate Release: February, 2014
 
Workshop on Managing your Timber and Taxes
What:   Timber and Taxes
When:      26, February, 2014. 4:00 p.m. to 9:00 p.m.   
Where:      Whiting Forest – 2303 Eastman Ave, Midland, MI
Cost:      $20.00/person (includes a light dinner)
Information:   Call Joelle Ferguson at 989.835.4886 or email jferguson@littleforks.org
MIDLAND – The Little Forks Conservancy, Saginaw Conservation District and Michigan Forestry Assistance Program are pleased to present a Timber Tax workshop featuring Dr. Karen Potter-Witter.

Dr. Potter- Witter is a faculty member of Michigan State University, Department of Forestry, and affiliated with the MSU Extension. Serving as a professor of forest economics she has over 30 years of experience in this field.  And she has published numerous journals and reports in this area.

The workshop will cover federal income tax provisions related to forestland management and timber sales. This will include deductibility of forest management expenses, reporting timber sale income, and important IRS forms to file. There will also be information about Michigan’s forest property tax acts. The Qualified Forest Program, revised last year, as a state tax incentive program designed to encourage sustainable and economically viable management of Michigan’s private forest resources.

Additionally, bring your smart phone and learn about the MISIN (Mid-West Invasive Species Network) phone app. and how to report locations with invasive species.  You can assist with an important mapping effort throughout the Saginaw Bay Watershed.

For more details, contact your local conservation district or download a reservation form at www.saginaw.org.  For additional questions you can reach the Saginaw Conservation District at 989.781.4077 extension 5. Registration deadline is Friday, February 21st.  Fee is $20.00/ person.

The Little Forks Conservancy works with landowners to permanently protect land with natural and cultural resources that add to the quality of life in our community. The Conservancy has helped private landowners protect over 3,000 acres in Mid-Michigan, including over 18 miles of waterways and shoreline.

The Michigan Forestry Assistance Program aims to provide support and education to non-industrial private owners of forestland to help with planning and management questions.  MI-FAP foresters can be contacted through county conservation districts, and currently cover 39 counties in the Upper and Lower Peninsulas.

Contact:
Joelle Ferguson
105 Post Street
Midland, MI 48640
jferguson@littleforks.org
p: 989.835.4886
f:  989.835.4895
www.littleforks.org
~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #21 on: February 12, 2014, 06:59:14 pm »
RE:  TIMBER TAX WORKSHOPS

24 February, Tomahawk (WI), Susan Metcalfe
26 February, Midland (MI), Karen Potter-Witter
9 March, Tomahawk (WI), Susan Metcalfe

More information at:  http://michigansaf.org/Calendar/calendar.htm
~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #22 on: January 05, 2015, 03:10:25 pm »
REVISED:
2014 Tax Tips Bulletin


Linda Wang, National Timber Tax Specialist with the U.S. Forest Service, has revised Tax Tips for Forest Landowners for the 2014 Tax Year. The revisions reflect changes in law as of December 2014.

This publication reviews the major Federal income tax laws to help you file your 2014 income tax
return. Although tax laws on timber transactions are not common knowledge, they are an important part of the ongoing cost of owning and managing timber, engaging in forest stewardship activities, and complying with tax law.

http://www.timbertax.org/developments/TaxTips2014.pdf
~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #23 on: January 15, 2015, 02:14:34 pm »
Timber Tax Workshop “Keep More $$$ From Your Timber Harvests”

Susan Metcalfe from Metcalfe Forestry LLC & Burns Timber Tax Service

When:
Monday Evening February 9th
5:30pm-8pm

Where:
Clare County Building Room A
Harrison, MI
In the basement

Cost:
$FREE
Workshop Sponsored by the Clare Conservation District

With Questions and Registration call or email Kylee, Clare/ Gladwin District Forester, at (989) 539-6401 or kylee.berger@macd.org

You may also register in person in the office at
225 W Main Street Harrison, MI 48625
Registration is not required but it’s nice to have a head count prior
~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #24 on: November 13, 2015, 12:53:35 pm »
2015 Tax Tips Bulletin Available

Dr. Linda Wang, National Timber Tax Specialist with the U.S. Forest Service, has finalized Tax Tips for Forest Landowners for the 2015 Tax Year. This publication reviews the major Federal income tax laws to help you file your 2015 income tax return. Although tax laws on timber transactions are not common knowledge, they are an important part of the ongoing cost of owning and managing timber, engaging in forest stewardship activities, and complying with tax law.
~Ron

Offline beenthere

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Re: Taxes on Timber sales
« Reply #25 on: November 13, 2015, 01:40:49 pm »
south central Wisconsin
 It may be that my sole purpose in life is simply to serve as a warning to others

Offline pine

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Re: Taxes on Timber sales
« Reply #26 on: November 13, 2015, 02:20:32 pm »
No I think he is referring to this one.  That one was 2014.

2015 Tax Tips for Forest Land Owners

Offline beenthere

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Re: Taxes on Timber sales
« Reply #27 on: November 13, 2015, 02:46:41 pm »
smiley_thumbsup

thanks pine
south central Wisconsin
 It may be that my sole purpose in life is simply to serve as a warning to others

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #28 on: November 13, 2015, 04:34:28 pm »
Yes, the 2015 information is now available.
~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #29 on: January 12, 2016, 05:23:01 pm »
Timber Tax Filing for the 2015 Tax Year
Time: 1:00 – 2:00 Eastern Time, 22 January 2016, Friday

Timber tax laws have changed due to the new tax law that was passed by Congress in December 2015. Brand new tax provisions on capital gains for timber corporations will affect timber businesses and owners. Business deductions on equipment costs have been increased significantly. Special charitable donation deduction on qualified conservation easement was extended.

To help the 2015 tax return filing, this one-hour webinar will cover the rules for timber tax reporting, including the latest law changes. It will cover the 1099 filing that the foresters must know. Bring your tax questions to get answers from the presenter.

Credits: One hour of SAF CFE Category I credits have been applied for.

Who will benefit: landowners, foresters, loggers, timber companies, extension agents, natural resource agency program staff and directors, CPAs, Tax Enrolled Agents, attorneys, and other tax preparers

Presenter: Dr. Linda Wang, National Timber Tax Specialist, USDA Forest Service

~Ron

Offline pine

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Re: Taxes on Timber sales
« Reply #30 on: January 12, 2016, 07:48:58 pm »
Any link to the source and more specifically how to register for the webinar?

Offline Ron Scott

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~Ron

Offline Ron Scott

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Re: Taxes on Timber sales
« Reply #32 on: October 30, 2016, 01:32:05 pm »
2016 Tax Tips Bulletin Available

Dr. Linda Wang, National Timber Tax Specialist with the U.S. Forest Service, has finalized Tax Tips for Forest Landowners for the 2016 Tax Year. This publication reviews the major Federal income tax laws to help you file your 2016 income tax return. Although tax laws on timber transactions are not common knowledge, they are an important part of the ongoing cost of owning and managing timber, engaging in forest stewardship activities, and complying with tax law.

http://www.fs.fed.us/spf/coop/library/taxtips2016.pdf
~Ron

Offline Lookin4GoodLife

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Re: Taxes on Timber sales
« Reply #33 on: November 20, 2017, 10:51:27 am »
Good googely, making my head swim!   :)  I never knew all this.  I guess it's obvious that if you sell *anything* for income, the IRS wants their cut, I just didn't realize the complexities of it all.  No wonder people are barking about a "fair tax", but I don't see how that would affect your state from levying against your timber profits.  (And I'm not trying to start an argument about tax plans!  LOL

I am planning on buying a small bandsaw mill and cutting trees to build various structures on my property such as pole barns, sheds, etc.  I wasn't planning on running any type of business or deducting any of my expenses, but do I have to consider the value of the lumber as income when building my buildings?  I don't know how the IRS would know about that, but I certainly don't want to run afoul of them or the state of Alabama when the value of my property goes up due to the buildings being appraised.  When we financed the land, the banker told me I couldn't sell the timber without consulting with them because since the land was financed, they'd want to bring in their forester to make sure the profit was maximized and they'd of course want their "cut" of the profits.  I had no idea about tax implications of anything like that, though.  I appreciate y'all posting all those links, I'll start reading through all that and trying to make some sense of it all.

Offline WDH

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Re: Taxes on Timber sales
« Reply #34 on: Yesterday at 07:08:48 am »
Timber is "real property" and if you borrow money on a piece of property, the timber is part of the collateral.  You cannot sell that timber without a release from the lending institution, and they usually require that some of the sale proceeds go against the note so that the value of the property is at least worth what you owe remaining on the note. 

If you hold the property for at least one year before selling timber, the profit from the timber sale is taxed as a capital gain which is a lower tax rate.  You can deduct the cost of the timber from the sale proceeds if you developed a cost basis at the time of purchase of the property.  This is called your timber basis.  It usually requires a licensed Forester to do an appraisal to establish the cost basis of the timber. 

If you site prepare and plant a stand of timber, the cost basis becomes the cost to site prepare and plant the trees.  This cost basis stays with that stand of timber until it is sold, and that cost basis can be deducted from the proceeds of the sale.  It is always prudent to know the value of any timber on any property that you buy so that you can use that value as the cost basis when you sell that timber in the future. 

If the fair market of a piece of property is $100, and if there is an equal value of timber and land, in this case $50 each, and if you make a good deal and buy the property at $80, which is 80% of the fair market value, you have to prorate the cost basis and in this case assign a cost basis of  80% times $50 for the land and 80% times $50 for the timber.  This establishes a cost basis of $40 for the land and $40 for the timber.
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