Thank YOU! this is what I have been hunting for!

If you have a timber tax basis done which I have. And say the basis was 50000 and I sold 50000 off of it in timber do I have to pay income tax on that 50000 or no since I bought the land with that timber on it?

@jacobhart6923

Жыл бұрын

Disclaimer: not tax or financial advice. In my experience the answer to this is no to ordinary income tax. You would be “depleting” your timber basis to 0 therefore taking it off your property basis (initial purchase price). So when you sold the property you would have 50k less in basis where the capital gain would be taxed yes at that point unless deferred if 1031 into the new property…or no tax if you kept the property and never sold it then no tax. Great question, thanks!

So we tiled our fields. I own the property, no lien on it. Just tell our tax guy regarding the depreciation of the drain pipe?

@adambrown9048

Жыл бұрын

Because I am not tax advisor I would say “look into doing section 179 depreciation on it” think last year was the last for 100% in first year and this year is only 90%…