TAXMAN Posted March 29, 2009 Report Share Posted March 29, 2009 TP bought land in May 06 for 30k. County assessment in May was 22k. TP sold timber from land in July 08 for 13k. County assessment in 08 still at 22k as they have not made a new assessment. No separation in sales price between buyer and seller. Could I safely allocate 7900 as basis in timber? There is no more timber on this land as it was replanted in pine trees. TP is not a farmer or anything that would make this a business. What does this board think? Many thanks. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 29, 2009 Report Share Posted March 29, 2009 I haven't had your situation, but others have recommended TimberTax.org Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 30, 2009 Author Report Share Posted March 30, 2009 That site wasn't much help in this situation. Any body else have an idea? thanks Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 30, 2009 Report Share Posted March 30, 2009 I don't know that you can rely on the tax assessment to actually look at the value of the lumber, but I don't know that you can't. It obviously had value at the time it was purchased. Could any of the people in the area who work with timber give you an estimate of how much timber has grown in the last two years to let you back into a number from what it is worth now? Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 30, 2009 Report Share Posted March 30, 2009 I don't know that you can rely on the tax assessment to actually look at the value of the lumber, but I don't know that you can't. It obviously had value at the time it was purchased. Could any of the people in the area who work with timber give you an estimate of how much timber has grown in the last two years to let you back into a number from what it is worth now? I am not familar with your area, but out here timber does not grow much in two years. I would find out what the market price per board feet was at time of purchase and apply it to the volume sold to determine basis. Timber prices have fallen out here since 2006. Good luck, Dan Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 31, 2009 Report Share Posted March 31, 2009 I have used your method numerous times. Obviously he paid extra for the timber because it had value. And recorded assessed values - regardless of how accurate they seem to be - are made by town govt. So, therefore must be of some creed. Quote Link to comment Share on other sites More sharing options...
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