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Old 04-01-2003, 08:27 AM
JimiFromMI
 
Posts: n/a
Default Schedule "T" Question to Foresters

Dear US Foresters:

As I understand it, a timber sale should be taxed by Uncle Sam only to the
extent of the growth of the trees since I've acquired the property (capital
gains). In practice, just how much of a burden to the forester (me) will it
be to calculate the capital gains of a timber sale on a property that has
not had a basis established since that purchase?

Specifically, the parcel of interest was purchased as primary residence in
1998. In spite of some personal hardships (everything is relative) I've
managed (so far) to retain the property despite my relocation and resist the
several "timber pimps" (thanks I think to JZ for the term) that have knocked
on my door.

Although book smart (and maybe newsgroup smart) with regard to forestry, I
am planning to seek out a private forester to help me manage my land.
Basically, I am asking the question: Is it a piece of cake for the forester
to calculate the capital gains on my trees since I've acquired the property
some years ago? How many years can pass before it does become a burden?
Should I expect the forester to understand what the hell I'm talking about
in the first place -- have they been educated on the tax code?

The only management activities that I've done is to girdle obvious cull
trees and remove the tops of previously felled trees for personal firewood
consumption. I did manage to prune the lower branches of some Black Walnut
and Cherry within the timber stands. All other management activities have
taken place on former agricultural fields (reforestation) or the ancient
fruit orchard -- anybody in need of some timber quality pear stumpage for
hand-crafted string instruments/whatever?

Please let me know what I should expect when seeking out a forester for my
land in West/Central Michigan.

Thanks,

DVK
--
My off-topic statement:
US Doctors = No Accountability