WebNov 11, 2024 · Species, size, quality:. Not all timber land is created equal. Certain types of timber (i.e. black cherry) are worth more than others (i.e. sweetgum).. Likewise, larger trees will be worth more than smaller trees. WebThe steps taken to maximize the income from your timber sale are referred to as "marketing" timber. Successful marketing involves understanding the forest products you are selling. ... Most landowners sell timber once or twice in a lifetime and have little opportunity to develop the necessary skills. A consulting forester can provide the skills ...
Farmers Can Count Timber Sales as a Capital Gain - FBC
WebSale of standing timber Usually, income from the sale of standing timber that has been owned for more than 1 year qualifies for the favorable long-term capital gains tax rate (0, … WebA timber buyer must consider several factors when determining the stumpage value of the trees you are offering for sale. First, like your forester, the buyer must determine the value of the log itself based on these criteria: • Species • Diameter • Length • Quality Then, the buyer must deduct from that value the costs of certain operations: labia reduction
Managing Your Timber Sale Tax MU Extension
WebCapital Gains Determination. To determine if your sale qualifies for capital gains treatment you must first identify what was sold, either stumpage (standing timber) or cut products. Stumpage, or standing timber is exactly that, trees that have been sold but not yet severed from their roots by cutting. This would also include the wood in trees ... WebMar 26, 2024 · There are important income tax considerations for timber sales. The income may qualify for capital gains treatment and as such be taxed at a lower rate. Visit … WebSep 7, 2012 · Timber sales generated about $155,500 in 1998 and $47,500 in 1999, resulting in capital gains of about $100,000 and $28,500, respectively. Mrs. Healy continued the logging after her husband’s death in 1999, and realized capital gains of $50,400 and $13,200 in 1999 and 2000. labia swelling icd 10