The nature of forestry
operations entails costly tree planting, half-a-generation of care and
nurturing, and prolonged risk exposure from fire, storm, tree disease and
insect damage. The impact of taxing any gain from the eventual timber sales
income can be very powerful.
Many landowners continue to pay more than
their fair share of taxes on their timber income. Even if you use an
accountant, you should understand how timber expenses and income are taxed,
since some tax preparers are not well versed in tax treatment for forestry.
Knowing the tax laws will give you an advantage in planning your forest
management activities.
Although tax laws provide special incentives
for timber growers, you may not be aware of or are confused by the tax
treatment on timber. Adding to this frustration is the fact that there are
relatively few professional tax services offered in the timber tax specialty.
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 in the state. To serve the need and gap in timber tax assistance,
Texas A&M Forest Service provides timber tax education and training,
conducts timber tax research and assesses the implications of timber tax laws
and policies.
Our annual workshop provides basic information
about timber taxation and the latest changes to tax laws and rules for tax
return preparations. Topics generally focus on federal timber income tax issues
for private forest owners with a refresher on local timberland property tax
incentives. Participants gain a clear understanding of commonly misunderstood
timber tax issues.
2022 Timber Income and Property Tax Workshop
Sponsored by Texas A&M
Forest Service
and Texas Forestry Association
+ 2022 Texas Timber Tax Workshop Recording, Presentation Slides, Example Problem and Forms
Recordings
Presentation Slides
- Timber Taxation - Tamara Cushing
This includes basics about timber taxation and tax laws and rules for 2020 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.
- Tax Law Updates, Tips, and Tools - Matthew Broyles
This covers federal timber income tax issues and discussion on current tax related issues.
- Timberland Property Tax in Texas - Joe Holcomb
This covers how timberland productivity values are determined in Texas and what kinds of state incentives are available for landowners.
Example Problem and Forms
+ Contact
Aaron Stottlemyer
Forest Resource
Analyst
200 Technology Way
College Station, TX 77845
Phone:
979-458-6630
Fax: 979-458-6633
astottlemyer@tfs.tamu.edu