Manage Forests and Land | Timber Taxation

MANAGE FORESTS & LAND

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.

View Timber Taxation Frequently Asked Questions

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.

2018 Timber Income and Property Tax Workshop
Sponsored by Texas A&M Forest Service
and Texas Forestry Association
+ 2018 Texas Timber Tax Workshop Presentation Slides
Timber Taxation - Tamara Cushing
This includes basics about timber taxation and tax laws and rules for 2017 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 Cuts & Jobs Act - Garvey Jackson
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.

Advanced Technology - Aaron Stottlemyer
This provides an introduction to Map My Property and My Land Management Connector applications at texasforestinfo.com.
+ Texas Timberland Property Tax Information

Timberland Property Tax in Texas (2016) covers how the property tax is determined, what kinds of state incentives are available for landowners, and updates on Texas tax laws related to timber management.
+ 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
+ Timber Taxation FAQs

View Timber Taxation Frequently Asked Questions
+ Federal Income Tax
Forest Landowners’ Guide to the Federal Income Tax
National Timber Tax Website
Tax Tips for Forest Landowners for the 2018 Tax Year
IRS Website
+ Local Property Tax
Manual for the Appraisal of Timberland
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
+ 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

RELATED INFORMATION

GRANT FUNDS AVAILABLE FOR VEGETATIVE FUEL BREAKS

Landowners in the high plains region of Texas may be eligible for funding that would assist in the creation of vegetative fuel breaks on private lands.

DON'T MOVE FIREWOOD

Protect Texas land and forests from invasive insects and disease. Obtain your holiday firewood from local sources or a trusted vendor close to home. Diseased firewood may carry invasive pests and threaten our native trees and forests.

REDUCE TEXAS WILDFIRE RISK

Reducing vegetation by thinning, trimming trees and removing ladder fuels, can decrease the spread and intensity of wildfire. It can also increase the chances for firefighters to control the fire. Learn more about community wildfire preparedness programs.

NEWSROOM

“Trees Are Key” Podcast reaches 100,000 listens

Recently, our podcast, “Trees Are Key with Paul Johnson” celebrated a milestone. As of February 7, our free, weekly podcast has received more than 100,000 listens. “Trees Are Key” is hosted by Paul Johnson, Texas A&M Forest Service Community Forestry Program Leader.

Annual workshop to assist forest landowners with 2018 tax preparation
Tax season is fast approaching and forest landowners may want to refresh their knowledge of timber tax laws. The 2019 Texas Timber Income and Property Tax Workshop will be held on February 11 from 8 am to 5 pm at the Civic Center in Diboll, Texas.

Veteran Forester is awarded Board of Regents Fellow Service Award
The Texas A&M University System Board of Regents have recognized James B. Rooni of Texas A&M Forest Service as a 2017-2018 Regents Fellow Service Award recipient.

1/22/2019 4:00:00 PM
Annual workshop to assist forest landowners with 2018 tax preparation
Tax season is fast approaching and forest landowners may want to refresh their knowledge of timber tax laws. The 2019 Texas Timber Income and Property Tax Workshop will be held on February 11 from 8 am to 5 pm at the Civic Center in Diboll, Texas.

1/22/2019 3:05:00 AM
Veteran Forester is awarded Board of Regents Fellow Service Award
The Texas A&M University System Board of Regents have recognized James B. Rooni of Texas A&M Forest Service as a 2017-2018 Regents Fellow Service Award recipient.

TAX ASSISTANCE

GRANT FUNDS AVAILABLE FOR VEGETATIVE FUEL BREAKS

DON'T MOVE FIREWOOD

REDUCE TEXAS WILDFIRE RISK

NEWSROOM

GRANT FUNDS AVAILABLE FOR VEGETATIVE FUEL BREAKS

DON'T MOVE FIREWOOD

REDUCE TEXAS WILDFIRE RISK

TEXAS A&M FOREST SERVICE

TEXAS A&M FOREST SERVICE