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Guide helps reduce federal taxes for forestland owners
September 10, 2008
CORVALLIS, Ore. – A multimedia guide for establishing "basis" on forestland, produced by Oregon State University Forestry Extension, can help reduce federal tax liabilities for forestland owners.
"Establishing 'basis' is one of the fundamental topics in forestland taxation," said Extension forester Bob Parker, who created the guide with Norman Elwood, Extension forestry specialist emeritus. "It represents the maximum amount the IRS allows to be deducted over time when making timber sales."
The step-by-step guide shows how to establish "basis," the financial starting point for calculating a forestland owner's tax liability on income from timber sales.
"Although it's easiest to establish 'basis' when property is purchased," Parker said, "the guide also explains how to do retroactive 'basis' calculations any time after the purchase."
The guide package includes a CD containing a 47-minute audiovisual presentation, lecture notes and a "basis" allocation worksheet. It runs on PCs using Windows NT 4.0 or later, Windows 98 or Windows XP; with Microsoft PowerPoint 2003 or later.
Called "Forestland Taxes: The Importance of Establishing BASIS," the guide can be purchased for $19.95 (plus shipping and handling) by going to the OSU Extension Service's online catalog.
Source: Bob Parker