GardenBanter.co.uk - View Single Post

05-01-2003, 09:07 PM

In article ,
says...
In article ,
writes:
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.

I'm not a forester, just a timber owner like you. The basis is an
appraisal, not a cruise. The basis depends on the value of the timber at
the time you purchased the land. The trees grow at a more or less steady
rate, but the price of timber fluctuates widely. During a period of

That's a good description.

Get a new appraisal if you're selling timber or land - the market's the
pits right now and any appraisal done for current markets would probably
show a decline in value. OTOH- that might be what you want for current
capital gains.
Also- most foresters specialize. The really good appraisers do only
that and are worth what they charge.