Agribusiness

Linda Wang, National Timber Tax Specialist, USDA Forest Service

Timber or landscape trees destroyed by the hurricane, fire, earthquake, ice, hail, tornado, and other storms are “casualty losses” that may allow the property owners to take a deduction on their federal income tax returns. The key for most cases is to figure out the “adjusted basis” of the timber. The “Adjusted Basis” of Timber Generally, the cost or the measure of your investment in the property you own is the property’s basis. The original basis is defined as follows: 1) for purchased timber property, it is the purchase price and related costs (such as legal fee and timber cruises); 2) for gifted timber property, it is the donor’s adjusted basis in most instances; 3) for inherited timber property, it is the fair market value (or alternative value if so elected) on the date of death (or alternative valuation date). The “adjusted basis” of a property is the original basis reduced or added by adjustments over the term of ownership (e.g., new purchase increases your timber basis while timber sale decreases your timber basis).

Linda Wang, National Timber Tax Specialist, Forest Service
Specific Federal income tax laws and rules apply to timber-related income and expenses. The tax tips provided in this bulletin are intended to assist timber owners, foresters, or loggers and their tax preparers in filing their 2017 tax returns. This material is for informational purposes only and is not intended to provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors before engaging in any transaction. The information is current as of September 30, 2017.

Helene Cser
Extension Associate
North Carolina State University
Leslie Boby
Extension Associate
Southern Regional Extension Forestry

Research and development on alternative sources of energy has been a priority for the United States since volatile energy prices in the 1970’s. This period of time, known as the “Energy Crisis,” occurred due to an oil embargo and limited global supply of oil. To combat these problems, Congress passed the Emergency Petroleum Act in 1973, the Energy Policy and Conservation Act in 1975, and created the Department of Energy in 1977. These congressional acts from more than 30 years ago were the beginnings of a national interest towards developing alternative energy sources. The outcome has been support for research and development of non-petroleum energy sources such as biomass, which is a renewable and carbon neutral source of energy used for heat, electricity and transportation fuels.

Private forest owners control most of the southern forest resource and are critical to maintaining forest health in the South. Record droughts, rising temperatures, increased frequency and intensity of wildfires, insect and plant invasions, and more intense storm events all pose threats to the health of Southern forests. Scientists project that increases in temperature and changes in rainfall patterns will cause these disturbances to become more common, occurring with greater intensity or duration. This pamphlet reviews healthy forest strategies and approaches to decrease the risks associated with these disturbances on your forestland.