Timber Tax Tips from Henry Barclay, CPA

AFOA's monthly news conference (audio) interviews Henry Barclay, managing partner of Lehmann, Ullman & Barclay, LLP, Birmingham, Alabama on his biannual timber Tax Tips report. Just some really good information on things you should keep in mind as you prepare your 2005 timber tax return and as plan for 2006.
Timber Tax Issues
USFS - More Tax Tips
National Timber Tax Website
Highlights from AFOA's Tax Tips:
* Salvage timber sales and their gain can be deferred if the proceeds are invested in similar property within two years (5 years for Katrina losses).
* You can qualify for capital gains treatment if you sell under a timber deed or lump sum contract.
* You can treat the first $10,000 of reforestation costs as deductions. The balance is amortized over 84 months (1/2 year of amortization is taken the first year).
* You may make tax free gifts of up to $12,000 of value each year beginning in 2006.