By Gary Allen Burns, consulting forester
For maximum federal timber management tax benefits, you should have good records to document your participation.
If you claim items on your tax return, you should retain records of your activities. You may want to have a log book of hours worked on your property as well as mileage traveled for operations. Keep a record of forestry classes or seminars you attended and all invoices and receipts.
It will help to have a forest management plan keeping track of timber growth and harvests and this may require that the property has a periodic timber cruise.
Keep a separate bank account for timber activity and conduct your operations in a business-like manner.