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how do you determine the cost basis of timber?

BLJ-91
Level 1
 
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5 Replies 5
sjrcpa
Level 15

From the appraised value of it when you purchased the property it is on.


ex-AllStar
rbynaker
Level 11

@sjrcpa wrote:

From the appraised value of it when you purchased the property it is on.


I was thinking this was printed on a ceiling tile in George's office, but your answer sounds more correct.

dkh
Level 11

When I have a client that sells some timber from his property I do not report any cost basis. However, I've never had a client that maintain a property strictly for harvesting timber.  All my clients situations have been property purchased with some wooded area that client had some good trees removed to put some money in their pocket.

sjrcpa
Level 15

Same here, except for the one client with a timber farm.


ex-AllStar
dd4vols
Level 9

I would report the Timber proceeds on Schedule D...get capital gain tax rates... but you will need to establish a basis for all the timber on the tract...and then allocate to the part that was cut.

 

https://proconnect.intuit.com/community/proseries-discussions/discussion/re-stumpage/01/66723#M37344

 

 

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