In the News - February 2008
Income tax deductions for storm-damaged timber
MONTICELLO, Ark. - A crucial question facing forest landowners after a
disaster is how to recover losses to timber from a tax point of view.
You may be able to recover the loss of your storm-damaged timber as a
casualty loss on your federal income tax return as outlined in the Internal
Revenue Code. To qualify as a casualty, the damage should cause the timber to be
unfit for use. To claim a casualty loss, the loss of timber must be caused by an
identifiable event that is sudden, unexpected, and unusual.
Ice storms, tornadoes, earthquakes, fires and floods meet these criteria.
No matter if you have a gain or a loss, good record keeping is important in
determining the basis of your timber. Consider consulting a registered forester
to assist you in determining the basis in your timber, and a certified public
accountant or tax attorney to address your specific tax reporting needs.
For more information about recovering the value of storm-damaged timber from
taxes, contact your county extension agent or visit
www.uaex.edu and select Natural Resources, then Forestry, then Ice Storm
Damaged Wood. The Cooperative Extension Service is part of the U of A Division
of Agriculture.
February 15, 2008
Media Contact: Lamar James
Extension Communications Specialists
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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