Donny Posted January 31, 2008 Report Share Posted January 31, 2008 client had one time sale of timer, I use form F to report tHis? is this correct thanks Quote Link to comment Share on other sites More sharing options...
wendybooth Posted January 31, 2008 Report Share Posted January 31, 2008 When I had this a few years ago I used Shc D as long term cap gain because bought land yrs ago. Hope this helps! Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted January 31, 2008 Report Share Posted January 31, 2008 When I had this a few years ago I used Shc D as long term cap gain because bought land yrs ago. Hope this helps! Pub 225 discusses putting it on Schedule F in certain situations. It usually goes on Schedule D. Quote Link to comment Share on other sites More sharing options...
Super Mom Posted January 31, 2008 Report Share Posted January 31, 2008 I had a client with this last year, and found I was supposed to use Shed. D. I did alot of research on this and found that people often overpay taxes on this because they don't take advantage of the adjusted basis on the original land purchase. There is much good information online such as Ohio State University, etc.... Your local Agricultural Extension is a good place for info too! Good Luck! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 31, 2008 Report Share Posted January 31, 2008 It would only go on the Sch F if the client is running a tree farm. If he merely makes a one time or an occasional timber sale, it goes on the D. Quote Link to comment Share on other sites More sharing options...
Donny Posted January 31, 2008 Author Report Share Posted January 31, 2008 It would only go on the Sch F if the client is running a tree farm. If he merely makes a one time or an occasional timber sale, it goes on the D. advice on figuring cost or basis thanks Quote Link to comment Share on other sites More sharing options...
Redneck Posted January 31, 2008 Report Share Posted January 31, 2008 It would only go on the Sch F if the client is running a tree farm. If he merely makes a one time or an occasional timber sale, it goes on the D. Form T - while not required for an occasional sale, the instructions for this form have some record keeping requirements of which the seller should be aware. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 31, 2008 Report Share Posted January 31, 2008 Donny, if the client bought the land and it already had mature or nearly mature trees, some part of the cost should be assigned to the trees, and that would be his basis. If he bought land with just saplings, he would not have any basis in the trees, so all the sale proceeds would be gain, unless he had some expenses to harvest them. If he bought clear land, and later planted the saplings, his basis would be the prep costs and cost of the saplings, which should have been capitalized at the time. If he bought the land with the trees, he should get an appraisal of the tree value at that time. The County Extension Agent can probably help him there. Quote Link to comment Share on other sites More sharing options...
Donny Posted February 1, 2008 Author Report Share Posted February 1, 2008 Donny, if the client bought the land and it already had mature or nearly mature trees, some part of the cost should be assigned to the trees, and that would be his basis. If he bought land with just saplings, he would not have any basis in the trees, so all the sale proceeds would be gain, unless he had some expenses to harvest them. If he bought clear land, and later planted the saplings, his basis would be the prep costs and cost of the saplings, which should have been capitalized at the time. If he bought the land with the trees, he should get an appraisal of the tree value at that time. The County Extension Agent can probably help him there. thanks for the help, greatly appreciated Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 1, 2008 Report Share Posted February 1, 2008 Generally, we only use sch F for this if they cut their own lumber, or at least helped to cut it. If they sold standing timber, and someone else did the cutting, I would report it on Sch D. Quote Link to comment Share on other sites More sharing options...
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