about timber tax can be found at http://forestry.about.com/education/forestry/msubtax.htm. inventory | appraisal | marketing | reforestation | mapping analysis | management | services | links | contact | about us home ...Timber Tax Timber TaxAccording to Bailey, et al., the six most important rules for timber investments are: The treatment of timber sale income as long-term capital gain. The... correct allocation of basis (acquisition costs) between land, timber, and other land improvements on the property. Cost depletion. The deduction, for an active business or investment...

inventory The first step in appraising, selling, or managing timber is to inventory the standing trees. The work of gathering inventory data is often called "cruising." While..., planning depletion schedules, estate division or transfer, timber marketing, and preparing management plans. Areas of distinctly different forest types should be inventoried separately... and shown on the map that accompanies the inventory report. The report may also itemize any merchantable trees that will not be managed for timber, such as trees within streamside...

trees are called non-merchantable. Cost basis is the market value of the timber portion of the timberland asset at the time of acquisition. It represents the amount of capital... expended in creating or acquiring the timber asset. Having an established cost basis may help offset capital gains when timber is sold. See also Timber Tax. As used here, depletion... is depreciation of the timber asset, or the periodic recovery of a portion of the cost of creating or acquiring the timber asset, usually through timber sales. A depletion schedule...

appraisal The objective of most timber appraisals is to establish a market value for the trees at a given point in time. Timber appraisals usually begin with a timber inventory... be obtained from recent comparable sealed-bid sales, timber prices can change dramatically over a short period of time. For this reason appraisal values are valid only for the day... the report is written, or at best for a few weeks thereafter. Furthermore, many factors influence the price a given tract of timber will command on a given day, and some tracts...

years of careful planning. The first rule of selling timber is simple: Know what you're selling before you sell it. CFC recommends measuring each and every sawtimber tree, one... of selling timber is equally simple: Advertise the sale as widely as possible. CFC advertises sales on a 75-mile radius from the tract, which in most areas will include over 100... timber buyers. The prospectus includes a summary of the products being offered, a tract map, a locator map, and lists the terms of the sale. The third rule: Accept only sealed bids...