Land Taxation
Tax laws provide special incentives for timber growers, but it’s important for you to understand tax treatment on timber.
Forestry operations are costly, take half-a-generation of care, and have prolonged risk exposure from fire, storm, tree disease, and insect damage. The impact of taxing any profit from timber sales income can be very powerful.
You may be paying too much on timber income taxes. Even if you use an accountant, you should understand how timber expenses and income are taxed. Few professional tax services are offered in the timber tax specialty. Knowing the tax laws will give you an advantage in planning your forest management activities.
Furthermore, timberland owners must pay yearly property taxes, making timber tax a major expense without annual income to offset the cost.
Tax assistance
Timber tax assistance, including timber income tax, timberland property tax, and timber-related sales tax, is essential to ensure the healthy and sustainable development of timber resources. To serve the need and gap in timber tax assistance, we provide timber tax education and training, conduct timber tax research, and assess the implications of timber tax laws and policies.
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Our annual workshop provides basic information about timber taxation and the latest changes to tax laws and rules for tax return preparations.
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Planning for the willful transfer of personal property over time and after death. When it comes to a family forest, estate planning isn’t just about taxes.
2024 Texas timber tax workshop materials
Recordings
Presentation slides
Timber Taxation – Tamara Cushing
This includes basics about timber taxation and tax laws and rules for 2023 tax return preparations. It provides an overview of various topics in timber taxation including basis determination and allocation, income tax considerations during timber sale, and Form T and other related tax forms.
Timberland Property Tax in Texas – Sarah Gutierrez
This covers how timberland productivity values are determined in Texas and what kinds of state incentives are available for landowners.
Appraisal of Timberland – Mark Freeman
This includes how land qualifies for timber special valuations, and application of timberland appraisal for counties in Texas.
Use of Advanced Technology for Record Keeping – Eric Wannlund
This covers an introduction of advance technology for recording keeping, by using a demonstration of Texasforestinfo.com.
Tax Law Updates, Tips, and Tools – Matthew Broyles
This covers federal timber income tax issues and discussion on current tax related issues.
Resources
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Other publications
- Reforestation incentive eligibility guidelines and forest zone determination rules
- Forest zone determination procedures
- Instructions for submitting information or evidence
- Application form for 1-d-1 (open space) agricultural appraisal
- Application form for 1-d-1 (open space) timber land appraisal
- Application form for restricted-use timberland appraisal
Have questions? We’re here to help!
Contact a local forester for expert guidance and resources on timber taxation, estate planning, and forest management.