Timber harvest and taxes?

[tall@wide]

How does everyone handle cutting timber and paying taxes. I've heard you need to get a timber value analysis when you purchase a farm, and when you cut, you only pay tax on the increase in value from that point. If you don't get your timber valued when you purchase the farm, and later cut timber, you pay the full tax on the cut?

 

[Windlooker]

Get a good accountant involved. The timber cut devalues the property and offsets the profit made. The exact legal/accounting terminology escapes me but the gist of it is a tax mitigation.

 

[Sligh1]

So- say u bought a farm 5 years ago. Forester gave u inventory…. U had “100 year old trees” u were gonna cut. If u owned it for 5 years- u only pay taxes on the tree growth vs when u bought it. So- hypothetically- u pay taxes on 5% growth. Or- say u buy land & cut trees right after buying…. No taxes. Forester & acct can help but huge tax advantages/savings.

 

[hillrunner]

So- say u bought a farm 5 years ago. Forester gave u inventory…. U had “100 year old trees” u were gonna cut. If u owned it for 5 years- u only pay taxes on the tree growth vs when u bought it. So- hypothetically- u pay taxes on 5% growth. Or- say u buy land & cut trees right after buying…. No taxes. Forester & acct can help but huge tax advantages/savings.

Wow, this is me to me. I'm going to bring this up to my cpa.