Timber Sales
hutcheson91
Member Posts: 1 Newcomer
in Income
We had a one time timber harvest this year. Which form do I use to show the capital gains? I researched lumber prices when we bought our property. I believe I use this number to figure gains. Any advice??
Answers
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If it's just a one-time sale and you're not in the business of selling timber, then you'll want your timber sale to show on Schedule D as an investment sale. This will be under Stocks or Investments Sold in our software. You'll enter the sales proceeds and your cost basis into the software, and it will calculate your gain based on what you enter. Figuring out your cost basis on timber can be a little tricky, but the following website has good information on how to calculate that: https://www.timbertax.org/getstarted/basis/
