Tax Tips for Forest Landowners for the 2021 Tax Year
As a private forest landowner, you might start to think about timber taxes only after having a timber sale. However there can be tax implications of each timber activity you conduct. Generally all income received is taxable unless the tax law excludes and nothing is deductible unless a provision allows it. Understanding the forestry specific tax provisions and how the general tax rules apply to your forestry activities can help lower your overall taxes through careful tax planning. The “tax tips” provided in this publication are intended to assist forest landowners and their tax advisors in preparing their 2021 Federal income tax returns. It can also help plan for future years. This material is for information and educational use only and is not intended as financial, tax, or legal advice. Please consult with your tax advisor concerning your particular tax situation. The information is current as of December 15, 2021.