Author Topic: Timber taxes, anybody?  (Read 697 times)


  • Bristles
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  • Posts: 390
  • Location: Falls City, OR
Timber taxes, anybody?
« on: August 19, 2015, 03:48:41 PM »
I sold some trees in February and will need to do my taxes properly this time.  Last time I just listed the money as ordinary income and screwed myself -- it should have been long term capital gains and I pay zero at my income level.

This time I'll have logging expenses, I'll subtract some of my basis from the income because the trees were here when I bought the property, and I had to pay the logger quite a bit to widen my driveway so the log truck would fit over and off my bridge.  I think properly I need to capitalize that expense, as it's a permanent improvement to my roadway. 

I'm in Oregon but I didn't sell enough trees to trigger the state timber severance taxes.

I'm sorry if it sounds like I think I know what I'm doing, because I don't and I'm open to any discussion on the topic, especially from others who sell timber.  I don't remember reading about anybody else on the forum with forest land so I may be out of luck.  I'm acquainted with the web site which has lots of stuff on the federal tax level.  I know where to find a form T-1 to file though I've never filled one out.  So:  any tips? 


  • Magnum Stache
  • ******
  • Posts: 2542
  • Location: Louisville, Ky.
Re: Timber taxes, anybody?
« Reply #1 on: August 19, 2015, 03:52:52 PM »
I have nothing to add, but am certainly interested in any details others could provide.  I'm considering a selective cut off my back property soon as well.