Forest Recovery Act

Bill: 116-s-1687
Sponsor: full_name: Sen. Hyde-Smith, Cindy [R-MS]
Introduced: 2019-05-23
Policy area: Taxation
Subjects: Disaster relief and insurance

Forests, forestry, trees

Income tax deductions

Inflation and prices
Latest action: action_date: 2019-05-23
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-05-23
action_desc: Introduced in Senate
text: <p><b>Forest Recovery Act </b></p> <p>This bill modifies the tax deduction for casualty losses to establish special rules for losses of uncut timber. </p> <p>In the case of the loss of uncut timber from fire, storm, other casualty, or theft, the basis used for determining the amount of the deduction may not be less than the excess of (1) the fair market value of the uncut timber determined immediately before the loss was sustained, over (2) the salvage value of the timber. </p> <p>The rule applies only if (1) the timber was held for the purpose of being cut and sold, and (2) the uncut timber subject to the loss is reforested within five years of the loss. </p> <p>The bill also exempts casualty losses from uncut timber from the rule restricting the deduction for personal casualty losses to losses attributable to a federally declared disaster. </p>

tv_txt: II 116th CONGRESS 1st Session S. 1687 IN THE SENATE OF THE UNITED STATES May 23 (legislative day, May 22), 2019 Mrs. Hyde-Smith (for herself, Mr. Wicker , Mr. Rubio , and Mr. Cotton ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide a special rule for certain casualty losses of uncut timber.

1. Short title This Act may be cited as the Forest Recovery Act . 2. Casualty losses of uncut timber (a) In general Section 165(b) of the Internal Revenue Code of 1986 is amended— (1) by striking For purposes of subsection (a) and inserting the following: (1) In general For purposes of subsection (a) ; and (2) by adding at the end the following new paragraph: (2) Special rule for casualty loss of uncut timber (A) In general In the case of the loss of any uncut timber from fire, storm, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss (as otherwise determined under paragraph (1)) shall not be less than the excess of— (i) the fair market value of such uncut timber determined immediately before such loss was sustained, over (ii) the salvage value of such timber. (B) Exclusion of timber not held for sale Subparagraph (A) shall not apply to any timber unless such timber is held for the purpose of being cut and sold. (C) Inclusion of pre-merchantable timber For purposes of this paragraph, the term uncut timber shall not fail to include pre-merchantable timber. (D) Reforestation requirement Subparagraph (A) shall not apply unless the uncut timber subject to the loss is reforested (with hardwoods, softwoods, or any combination thereof) by planting, seeding, or appropriate site preparation, not later than the close of the 5-year period beginning on the date of such loss. . (b) Exception To repeal of personal casualty losses Section 165(h)(5)(A) is amended by inserting or a loss of uncut timber (within the meaning of subsection (b)(2)) to which subsection (b)(2)(A) applies after Federally declared disaster (as defined in subsection (i)(5)) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.