Timber Cost Basis

Forum|Forum|2 years ago
April 16, 2024
2 replies
24 views

Good morning,

Happy AFTER TAX Day!!!

However, still sorting through extensions...... 😉

I'm trying to find a reasonable way to determine cost basis on a timber sale for property that has been held for decades. Maybe my brain is tired, but it seems like all of the reference articles are just making me more confused lol!!!

Thank you to anyone available today who might have any insights,

Dawn

ProSeries Professional

This topic has been closed for replies.

Best answer by IRonMaN

Held for decades? Basis is probably zero since it takes decades for the trees to grow big enough to be harvested.

IRonMaNAnswer

Level 15

Held for decades? Basis is probably zero since it takes decades for the trees to grow big enough to be harvested.

Slava Ukraini!

dkh

Level 15

I always use $0 as a basis

SensibleandHourlyAuthor

Level 6

Good morning,

So, I did use 0 as the cost basis, and it didn't change the results of the return at all from a 4k timber sale. Is that typical? I just feel like I must be missing something.... 🇲🇶

IRonMaN

Level 15

Low income so the capital gains rate was zero?

Slava Ukraini!

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