So hopefully in the near future, I will be able to buy a property and maybe be able to harvest some timber off of it. Since this is income, I would assume I would have to pay taxes on it? I have been researching this topic a bit and came across a timber tax basis where within 5 years of purchasing a property, you can have someone come out and give you a value of the timber. You then can take that amount to be used as part of the purchase price of the property. Then when you harvest some of the timber, that will be tax free because its considered a loss. For example, say that the timber was value at 20k and you only had 10k of timber harvested, that would be considered a loss and no taxes would have to be paid on the 10k. Has anyone had any experience with this? Below is a video that can probably explain this better...lol.