Book review: Timber Tax Management for Family Forest Owners
By Mike Reichenbach, University of Minnesota Extension Forester
Timber Tax Management for Family Forest Owners
2009 Edition for Filing 2008 Tax Returns
William L. Hoover and Mark Koontz
Timber Tax Management for Family Forest Owners is written for woodland owners and tax professionals. It provides more than a description of how to file after you have a timber sale. It provides an overview of the tax code that pertains to timber sales and the operation of a woodland as a business. It covers acquisitions, how to structure the acquisition, record keeping, reforestation expenses, management and operating expenses, timber sales, casualty losses, land sales, and exchanges. The conclusion is an in-depth treatment of Form T. The book will help landowners answer questions about the legal and financial aspects of ownership.
Landowners and those who are likely to purchase or inherit woodland should read this book. It provides a step by step decision process for operation of the land as a business. The authors state on page 27 that one of the differences between a personal use activity and a business is, “The willingness of an owner to undertake an activity for profit. Owners not willing to do the record keeping should treat their activity as a personal use activity.” This clear statement and others throughout the book will help landowners, accountants and other tax professionals make decisions regarding the operation of their forestland.
The book is self published and is available in a 3 ring binder format. It may be ordered through http://www.timbertaxadvice.com/