Timber Taxation

"Timber taxation" is consistently listed by landowners as a priority need for forestry educational programs. Changes in the Federal tax laws in 1986 and 1997 have generated many questions and concerns among landowners and accountants. New revenue rulings further defining these changes continue to modify the way forest-related income, expenses, and assets must be handled for tax purposes.

The next decade will witness the largest intergenerational transfer of wealth in U.S. history. In the U.S. today, those over 60 have a net worth of $6.8 trillion, and the "baby boom" generation will be the recipients of that wealth.

More than 65 percent of the private forest land in Mississippi (7.6 million acres) is owned by individuals 55 or older. Forest land is worth $1000 per acre (land and timber). In forest land assets, $7.6 billion will change hands in Mississippi in the next 10 to 20 years. Uneducated handling of these assets cost Mississippians more than $25 million per year.

Related Publications

• 1983 Basics of Basis
• 2307 Timber Tax Overview
• 2420 Paying For A New Forest Without Cost-Share Funding

Frequently Asked Questions

• FAQ's about Timber Casualty Losses