2. What type of taxes do I have to pay and what are the percentages that I will have to pay when I sell my timber?

We all will never get a good handle on the ever changing taxes and etc. of the IRS. That is what professional accountants do for a living and that is where you need to go! There are so many possibilities, scenarios and ways to record the income depending on a variety of elements. We do encourage you to take a look at the National Timber Tax Website, and we do encourage you to contact your Accountant prior to selling your timber. Make sure they have dealt with selling timber or forest products before. They will benefit you tremendously and doing that prior to the sale will help you better plan when and how much to harvest. One word of advice, don't listen to your neighbor that sold their timber last year! The situation of ownership, of income, of donations are more than likely different than yours. They might say they were charged 12% and you might get charged 25%, or the other way around. So, we definitely encourage you to contact your accountant before planning a timber harvest, it will pay you!

Back to FAQ