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Financial Planning / Tax Strategies
|Subject: Re: bought forest property||Date: 2/14/2013 8:27 PM|
|Author: ptheland||Number: 117772 of 122902|
Perhaps I was a bit hasty.
By grow trees, are you talking about growing trees to eventually be harvested? If so, I think that might be a farming activity. Still can't depreciate the land, but you might be able to allocate some part of the cost to the standing timber. And even that wouldn't be depreciated. It would become essentially inventory. So when you sell the timber for harvest, you'd get to write off that inventory against your timber sale proceeds.
I found a Form T that deals with timber activities. I never knew that existed until now. I do know that there are lots of unique tax issues with growing timber. Unfortunately, I know very little detail about those.
raise swallows, and feed the deer.
Once again, are you raising swallows and deer to be sold in some way? If so, that would definitely be a farming activity. There's lots of good info out there about farms. However, I'm a city boy. I think I've done one or two farm returns in my career. So I'm not a good resource for that info.
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