Capitol Gaines Taxes On Timber Sale
I am in need of some info on timber sale
taxes. I bought 6 acres of bare land in 2003 with timber on it and am going to build a home. I logged it and am wondering if i have to claim all of the net
sale for taxes or can i deduct the cost of the land.
You can NOT deduct the cost of the land. The cost of the land is an investment, which will be recovered (hopefully at a profit) when you sell.
You do declare your net income from the timber sale.
thanks for your reponse
Dave T