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Level 1
December 7, 2019
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I have a partnership that rents land to a campground. They cleared land by cutting and selling timber. How is this income reported & on which returns?

  • December 7, 2019
  • 5 replies
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Best answer by IRonMaN

On the 1065.  Does the partnership only rent land or does it have other activities?

5 replies

IRonMaN
IRonMaNAnswer
Level 15
December 7, 2019

On the 1065.  Does the partnership only rent land or does it have other activities?

Slava Ukraini!
dd4vols
Intuit Community Champion
December 7, 2019

and the selling of the Timber (unless their primary business is selling timber), would be a Schedule D Capital Gain.... and either short-term or long-term depending on the acquisition date. 

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sjrcpa
Level 15
December 7, 2019
and what will they use for basis? Except for timber grower businesses, hardly any one has the basis for timber on their land.
The more I know the more I don’t know.