Timber Royalty?

[SueBaby]

My client bought land and cut the timber from it and now I have a 1099S in proceeds from real estate transactions. In box #1 is the date box #2 is $4714 and box #3 is Pay-as-Cut Timber Royalty.

My question is: How do I put this on sch D? (He bought the land years ago.) Or royalty on sch E? He still has the land but sold the timber.

I guess I have looked at this thing way tooo long and I know it is NOT this confuessing.

[jimmcg]

Timber Sale

Under "search" type in "timber sale" and you will find some informative discussion of a few months past including a reference to an informative web site

[val]

timber sale

capital gain, sch D, comes under section 1231 treatment [long term]

[SueBaby]

capital gain, sch D, comes under section 1231 treatment [long term]

THANK YOU BOTH for that information it helped!