By Gary Allen Burn, Consulting Forester
If you are classified as an investor, timber revenues are reported on Part II of Schedule D of Form 1040, assuming you have held the property over one year to qualify for long term capital gains. Report timber-related expenses on Schedule A of Form 1040. If you are classified as a trade or business, income can be reported with other business income on Form 4797 and netted for capital gains purposes. If you are a legal farmer, timber-related expenses are reported on Schedule F. Otherwise, they are recorded on Schedule C of Form 1040, or other business schedule.