Most tax accountants are not familiar with all of the special provisions available for private forest landowners . The tax code is very complex and these special provisions are quite obscure. Hence, you need to be aware of them so that you can inform your tax accountant. You must have a profit motive to claim business or investment expenses, but you do not have to have a profit three out of five consecutive years. An expanded definition for profit is particularly relevant to timber.
Profit also includes appreciation in value of assets.
Generally, you get the best tax treatment if you are an active participant in the trade or business. The passive rules apply, but it is not difficult for you to meet these requirements if you so choose. You should also attach Form T schedules to your tax return when specified by the instructions included on this form. Listed below are several publications and websites that are available on the Internet that cover timber taxation issues for forest landowners. Peachtree Road N.W. Atlanta, GA 30309 Let us know how we're doing.