Value-Added Forestry
How Can a professional Forester help you?
TIMBER SALES – Before you sell timber, ask yourself:
- Do you know what you are selling? Can you identify the tree species, volume and quality of each tree?
- Would you sell the contents of a grain bin without knowing whether it contains corn or beans and the number of bushels?
- Do you know the current market price for timber?
- If you don’t know the answer to these questions call for more information before you sell your timber.
TIMBER SALES AND TAXES - Did you know ?
- The sale of timber for most farmers and landowners is not ordinary income but the sale of a capital asset
- Income from timber sales is normally not subject to self employment taxes
- Income from recently acquired timbered land may not be taxable at all.
- When timber land ownership changes it is important to determine the value of the standing timber separate from the land in order to reduce the capital gains tax on any future timber sales
- Even if you did not establish the value of your standing timber at the time it was acquired, professional foresters can go back and establish a value
FOREST MANAGEMENT PLANS...
- Should be written by a professional forester before any timber harvest or implementation of any other forestry practice
- Are required to be eligible for most state and federal cost share programs
- Can reduce property taxes on forested or reforested lands
- Once implemented will increase the present and future value of you property
