by Christmas Tree Tax Team | Oct 3, 2023 | Christmas Tree Tax Resources, Q & A, Timber Tax Resources
The difference between depletion blocks and depletion accounts is often confused by forest landowners and Christmas tree growers. As a quick reminder, basis is the measure of an individual’s investment in an asset, or the amount of money that has already...
by Christmas Tree Tax Team | Apr 19, 2023 | Christmas Tree Tax Resources
Christmas tree growers who show a business loss on their tax return should not be worried about the hobby loss rules, so long as their farm shows an overall net profit. I’ve received a number of questions over the years dealing with the application of the hobby loss...
by Christmas Tree Tax Team | Nov 1, 2022 | Q & A, Timber Tax Resources
I often receive questions from forest landowners about the differences between Internal Revenue Code (IRC) § 631(a) and § 631(b). IRC § 631 provides capital gain treatment for qualifying timber sales. Capital gain treatment is beneficial to forest landowners,...
by Christmas Tree Tax Team | Oct 1, 2022 | Christmas Tree Tax Resources, Q & A
Christmas tree growers are often eligible for a tax deduction for trees damaged or destroyed due to natural disasters. However, the tax deduction is limited to the adjusted basis of the trees, not the trees’ market value. Are you a forest landowner wondering how to...
by Christmas Tree Tax Team | Jun 15, 2022 | Q & A, Saving Taxes, Timber Tax Resources
My last article analyzed the factors that affect how much money a Christmas tree grower can save by making a capital gain election. I often receive similar questions from forest landowners about how much money they can save on timber sales by qualifying for capital...
