Tornado damage timber on farm

[thomtax]

Client had extensive damage on farm. They collected a small amount for sale of the downed timber, which was reported on a 1099S. Would you advise to just include this in with the farm income or put on sch D. I'm inclined towards D but would like thoughts as to which way would benefit client. There is no way, that I know of, to value the timber basis.

LT

[ChEAr$]

Client had extensive damage on farm. They collected a small amount for sale of the downed timber, which was reported on a 1099S. Would you advise to just include this in with the farm income or put on sch D. I'm inclined towards D but would like thoughts as to which way would benefit client. There is no way, that I know of, to value the timber basis.

LT

If he has no history of having been a timber "farmer", i.e. isolated sales maybe
every 7 years of a little bit of timber, then it's schedule d for me.

[Burke]

I agree. Schedule D. Basis can be taken for timber, but only if it was appraised at time of purchase for allocable board feet. Long term if owned more than one year.