Recordkeeping for the IRS (and Yourself!) 

As a forest landowner, you must keep good records in order to take maximum advantage of the special tax treatments available for timber. At a minimum, you should keep a tree farm journal that lists all activities, costs, and incomes from the forest (see example below). You also should have accounts for land, timber, and other capital assets. When setting up timber basis accounts, it is a good idea to use Form T Forest Activities Schedule as a guide. It may be required when claiming depletion of the timber basis after a timber sale or loss. Claiming depletion will reduce the taxes paid on a timber sale or allow a loss to be deducted.

Dealing with timber loss due to fire: the Federal tax implications 

I hope most of you don’t need to read this but we need to talk about what to do if you had fire on your property in 2015.  Normally, taxpayers are only able to recover their investment in timber at the time of a harvest.  This is done through the use of depletion.  However, if you have a loss on your property, you can also reclaim some of that investment in the form of a casualty loss deduction.

Tax Planning -- The Reforestation Incentive 

 

Soon we will all be filing our 2015 tax returns.  The current income tax law has a special provision for forest landowners.  The law allows landowners to deduct from their income tax return up to $10,000 in reforestation expenditures per tax year, per qualified timber property. 

Igniting the spark: Encouraging kids to spend time in the forest 

“We have such a brief opportunity to pass on to our children our love for this Earth, and to tell our stories. These are the moments when the world is made whole. In my children's memories, the adventures we've had together in nature will always exist.”
Richard Louv, Last Child in the Woods: Saving Our Children from Nature-Deficit Disorder

Strengthening Your Relationship…With Your Land 

A fenced area 8 feet wide and 100 feet long may seem like a strange design choice, but it keeps the deer out of the apple orchard—and is just one of the many examples of how Kenna and Walt Levendosky creatively live in harmony with their land.

For many landowners, a relationship with the land is just like any other relationship in life—it requires an investment of time and effort, tends to change over the years, and comes with its own set of unique challenges. And, like any healthy relationship, the energy invested is returned tenfold.