4684 Question

[quicksam]

I have to determine if the casualty loss property is income producing property or business property.
If it is income producing property then the loss is carried to the schedule A where it does not help as much. If it is business property then we get to deduct the loss as a deduction which helps the most.

The property is timber that was destroyed in a fire here in Georgia last year. He planted the timber and was growing to sell one day.

My first inclination is that it may be income producing but I am not real sure. It doesn't clarify the difference anywhere I have found.

Thanks

[Gene V]

I would use it as business property; he's not going to get much of a loss, unless he is in
A government declares disaster area.

Here is a link to information on timber loss

http://www.timbertax.org/getstarted/casualty/casualty.asp