Home Columnist Forestry Update 3-15

Forestry Update 3-15


By Gary Allen Burns

For federal income tax purposes, income from standing timber held as an investment is taxed as capital gains if you owned the timber more than one year before the sale. The timber sale is reported on Form 8949 and Schedule D. The tax rate may vary from 0% to 23.8%, depending on your adjusted gross income. Investment and passive business timber sales for taxpayers with an Adjusted Gross Income over $200,000 ($250,000 for couples) are subject to a 3.8 percent net investment income tax.

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