Timber

[Earl]

Have client who purchased some acreage. Bought tree seedlings and planted them on the acreage. Not in timber business or a tree farmer of any kind. He said that he might have them cut for sale sometime in the future.

Any current deduction for the cost of seedlings and planting,

[FEDUKE404]

Rfst ?

Have client who purchased some acreage. Bought tree seedlings and planted them on the acreage. Not in timber business or a tree farmer of any kind. He said that he might have them cut for sale sometime in the future.

Any current deduction for the cost of seedlings and planting,

At one time there were some pretty nice "reforestation" expenses that likely could be taken as an adjustment to income on line 36 of Form 1040. The process was essentially a 7-year amortization of certain qualifying costs.

I have not dealt with such in recent years (except a continuing number - 84 month period) and IIRC the rules may have changed significantly. Check with a local university that has a strong agricultural connection.

Too busy these days to research..................

FE

[taxdude71]

There is no current deductable expense as he is not an active farmer. The cost would count as basis for when he does eventualy have a timber sale.

[JG EA]

Have client who purchased some acreage. Bought tree seedlings and planted them on the acreage. Not in timber business or a tree farmer of any kind. He said that he might have them cut for sale sometime in the future.

Any current deduction for the cost of seedlings and planting,

Individuals can keep track of their timber basis. If he is concerned about about tree basis vs. land basis he could have a cruise done (ask forestry department in your area.) That way he can take cost depletion when they are sold. (There is no % depletion for timber.) Just knowing how much he spent in planting isn't enough because of the different kind of trees. It sounds like investment property unless it rises to the level of business.