How To Minimize Your Timber Sale Tax Bill

If you received money for the sale of timber, the government expects taxes to be paid on that income. The amount of tax you pay on that income will depend on the nature of the timber sale and how well you follow the rules to minimize the tax liability.

There are three main ways to reduce the tax bill; 1) report income as capital gains, 2) calculate the timber basis and depletion, and 3) keep receipts for all out-of-pocket expenses related to the timber sale.

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