Tax Basis Determination
Did you recently buy your timberland? On the other hand, have you owned it for many years? In either case, Monroe Timberland Consultants, can determine the TAX BASIS of your timber.
The tax basis is the value of the timber at the time of purchase or inheritance of the land. When selling timber, the basis may be deducted from the net proceeds to determine taxable income. For this reason, the tax basis in timber is IMPORTANT TO ESTABLISH and have in your timberland records.
If the land was bought or inherited years ago, the basis can be determined today by taking measurements and growth studies to determine the volume and value of timber at the time it was acquired.