The Forest Landowners Guide to the Federal Income Tax: Index

Publications > Forest Landowners Guide to the Federal Income Tax, Ag. Handbook No. 718

Index

Accounting methods	111
Accounts-also listed by name	23, 112-114
Active income or loss	40
Ad valorem taxes-also see Property taxes	17, 38, 42
Adjusted basis	21, 45
Administrative law	99-100
Afforestation expenses	21, 26, 28, 29, 113
Afforestation expenses, amortization of	28, 113
Agricultural conservation program (ACP) cost-share payments	55, 88
Allocation of basis	4, 22
Allocation of costs	22
Allowable basis	45, 46, 69, 84
Alternate valuation date	21
Alternative minimum tax	85—86
Amortization	26, 28, 59, 61, 83, 91, 113
Appeals	104
Audits	102-104

Basis	21, 45, 65, 69, 139-140
Brush control	25, 140
Business expenses, how to recover	5, 38, 40, 41, 42, 72, 91
Business versus hobby	13
By-products	61, 87

C corporations	26, 40, 41, 42, 96
Capital accounts	21, 23, 112-113
Capital asset	21, 23, 52
Capital gains and losses	51, 52, 53, 55, 92,140-143
Capital income accounts	113
Capitalization	21, 39, 42, 112
Capitalize versus deduct	21, 25, 26, 39
Carrying charges-also see specific item	38, 39, 40, 41, 42, 91
Case law	100-102
Casualty losses	67-70
Chips	61, 87
Christmas trees, as timber	55, 91
Christmas trees, expenses of producing	91, 139
Christmas trees, income from	92, 141
Community property	95
Condemnations	71-72, 73. 74
Conservation easements	79-81
Conservation Reserve Program (CRP) cost-share payments	25, 59, 88
Consulting forester	13, 38, 45, 56, 69 -
Contract right to cut versus service contract	55
Co-ownership	95
Corporations	26, 40, 41, 42, 96
Cost—also see specific items	21, 38, 45, 91
Courts	101, 102
Cruising expense	23, 45, 72
Cuffing as a sale or exchange	55, 92
Cuffing contracts	53, 55, 66
Cutting rights	53, 55, 66, 140—141

Date of disposal	55
Depletion deduction	6, 21, 45, 46, 55, 68, 69,70, 72, 84, 93, 139
Depreciable land improvement account	23
Depreciation accounts	113
Depreciation expenses	29, 113
Disease control expenses	38
Disposal with a retained economic interest	53, 92, 105
Disposition of depreciated property	38
Drought, damage due to	3, 68, 70

Economic decision criteria	6, 7
Economic interest, defined	53
Elections by taxpayer	21,28,29,30,31,32,35,39, 42, 43, 55, 56, 73, 74, 84, 87, 88, 91, 92
Employee	89-90
Environmental Quality Incentives Program (EQIP) cost-share payments	58, 88, 140
Equipment	21, 25, 26, 30, 31, 70
Equipment accounts	26, 113
Escrow Accounts	84
Estates	14,18,21,26,35,40,50,79,80,81,97
Evergreen trees, defined	55, 91
Exchanges	22, 28, 63-66, 72, 143
Expense accounts	113

Fair market value	21, 22, 55, 56, 59, 63, 65, 70, 72, 73, 83, 84, 92
Farming	25, 29, 41, 83, 91
Fire protection expenses	17, 38
Fire, losses due to	67, 68, 72
For profit, defined	39
Forest products	3, 61, 87
Forester	13, 14, 16, 22, 38, 45
Forestry Incentives Program (FIP) cost-share payments	55, 88, 140
Form 1040	18, 28, 60, 95, 104
Form 1040 A	104
Form 1040 EZ	104
Form 1040 X	104
Form 1065	87
Form 1099	60, 61, 90, 103
Form 2297	101
Form 2553	97
Form 2848	103
Form 3468	29
Form 4255	29
Form 4562	28, 32, 35, 36
Form4684	73,74
Form 4797	36, 53, 55, 57, 61, 66, 74, 84
Form 4952	43
Form 6251	85,86
Form 6252	83,84,85
Form 8283	81
Form 8582	42
Form 8824	66
Form SS-8	90
Form T	53, 85, 111, 145
Form W-2	89, 103

Gain or loss, how computed	45, 50, 55, 68,72, 73
General business accounts	114
Gifts, basis of	22
Gross profit percentage	83
Growth, accounting for	26, 45, 113

Hobby versus business	13
Holding period	1,50,51,55,56,63
Hurricanes, losses due to	(See Windstorms)

Ice storm, losses due to	72
Improvements to land	23, 29, 112
Independent contractor	53, 56, 89—90
Information returns	60, 61, 90, 103
Inherited property, basis of	21
Insect protection expenses	38
Insects, losses due to	4, 67, 68, 72
Installment sales	83—85
Insurance expenses	38
Insurance, proceeds from	67, 68, 69, 70, 71, 73,
Interest	4, 6, 7, 9, 11, 21, 38, 39, 41, 42, 83, 85, 86, 103, 114
Investment expenses, how to recover	42—43
Investment tax credit	26, 29, 40, 42, 59, 61, 91
Investment, property held for	13, 17, 42, 52, 61, 63, 64, 67, 73, 74, 79
Involuntary conversions	67—77, 143—144

Joint tenancy	95
Journal	112, 114, 115, 116—118

Land account	23, 71, 112
Leases	5, 17, 28, 39, 59, 64, 72, 79, 83, 87, 114
Ledger	112
Life estate	95
Like-kind exchanges	28, 63—66, 143
Limbs, sale of	61
Limited liability companies	18, 86, 97
Limited partnership	96
Logging roads	21, 23, 29, 35, 112, 113
Losses	(See Capital gains and losses, or Involuntary conversions)
Lump-sum sale	46, 51, 52—53, 61, 72, 83, 88, 92

Management expenses—also see specific expense	5,13, 16, 17, 25, 26, 28, 29, 31, 38, 39, 40, 41, 42, 43, 45, 70, 72, 79, 85, 91, 113
Marking of timber	45, 52
Material participation	17, 40—41, 85, 91, 97, 112
Merchantable timber	4, 25, 26, 28, 45,65, 66, 68, 69, 72, 113
Minimum tax	8 5-86

Non-business expenses, recovery of	13, 17
Noncasualty losses	67, 68, 70, 73, 74

Operating expenses—also see specific item	38, 91
Ordinary income	5, 16, 17, 28, 38, 45, 50,51, 53, 55, 61, 71, 74, 83, 87, 88, 91, 105, 114
Ordinary income accounts	114
Original basis	21
Outright sale of timber	51, 52—53, 61, 72, 83, 88, 92
Owner, defined	53, 56

Partial destruction, losses due to	70, 72
Partnerships	18, 26, 40, 63, 86, 87, 92, 96, 104
Passive activity	17, 40, 41, 83, 85, 91
Passive income or loss	40, 41, 42
Personal use, property held for	17, 50, 52, 56, 67, 74
Plantation subaccount	25, 26, 28, 45, 70, 113
Planting expenses	4, 21, 25, 26, 28,29, 72, 91, 113
Portfolio income	41
Precommercial thinning	38, 39, 113
Preproductive period	16, 91
Primarily for sale, timber held	30, 51, 53, 66, 74, 88, 92, 105
Profit, defined for timber investments	17, 39
Property taxes	16, 17, 38, 39, 42, 86, 113
Pruning expenses 91 Purchased property, basis of	21

Quantity of timber, determination of

Recordkeeping requirements	35, 41, 108, 112
Reforestation expenses	15, 21, 26, 28, 29, 58,59, 61, 91, 113
Reforestation expenses, amortization of	26, 28,59, 61, 83, 91, 113
Reforestation tax credit	26, 29, 40, 42, 59, 61, 91
Rental income	59, 83, 87, 88
Retained economic interest	51, 53, 92
Revocation of election under Section 631(a)	56
Roads	21, 23, 29, 35, 38, 112, 113

S corporations	18, 26, 40, 97, 104, 108
Sale, costs of	21, 45, 83, 84, 114
Sales, types of	46, 51, 52—53, 53—55, 55—57, 91
Salvage of damaged timber	68, 70, 72, 73
Scaling of logs	45, 53, 83
Schedule A, Form 1040	28, 43, 74, 85
Schedule B, Form T	23
Schedule C, Form 1040	18, 28, 41, 53, 57, 60, 74, 95
Schedule C, Form T	73
Schedule D, Form 1040	52, 53, 66, 74, 84, 86
Schedule D, Form T	73
Schedule E, Form 1040	18, 74, 96, 97
Schedule E, Form T	28
Schedule F, Form 1040	18, 28, 41, 53, 57,61, 74, 88, 95
ScheduleF, Form T	45, 56, 57, 73
Schedules SE	87, 88
Schedules K-1	87
Section 175 deduction	25
Section 179 deduction	29, 31, 35—37, 38
Section 631 (a) transaction	46, 51, 55—57, 61, 72, 73, 87, 88, 92, 94
Section 631(b) disposal	46, 51, 53—55, 61, 72, 83, 84, 87, 92, 94
Section 2032A	41
Self-employment tax	16, 51, 61, 86—88, 107
Selling expenses	21, 45, 83, 84, 114
Service forester	69
Shearing expenses	91
Site preparation expenses	4, 21, 25
Social Security tax—also see Self-employment tax	86-88
Soil and water conservation expenses	25, 59, 88
Sole ownership proprietorship	17, 51, 86, 95, 96
Special use valuation	14, 21, 41, 59
State conservation program cost-share payments	58, 60, 88
Stewardship Incentives Program (SIP) cost-share payments	58, 59, 88, 140
Stumpage	6, 56, 57, 65
Stumps	61, 143
Subchapter S corporations	18, 26, 40, 97, 104, 108

Taxes, deductible and nondeductible	17, 38, 39, 41, 42, 86
Tenancy by the entirety	95
Tenancy in common	95
Theft, losses from	67, 71, 72, 73
Thinning expenses	38, 39, 113
Timber accounts	13, 25, 26, 39, 45, 50, 68, 70, 91, 113
Timber cruise expenses	23, 46 Timber owner 53, 56
Timber stand improvement (TSI) expenses	1, 8, 26, 39, 58
Timber, defined 53, 91
Timeline	7
Tops, sale of	55, 61
Tornado, losses due to	(See Windstorms)
Trade or business, held for use in	17, 18, 31, 35, 36, 38, 40, 41, 51, 52, 53, 55, 56, 63, 64, 67, 74, 79, 86, 87, 88, 92, 105
Travel expense	38, 45, 107, 113
Tree stumps	61, 143
Trees, damage to	53, 67—77
Trusts	14, 18, 26, 35, 40, 97

Uniform capitalization rules

21, 30, 91

Valuation	16, 22, 80
Valuation date	21

Wetlands Reserve Program (WRP) cost-share payments	58, 88, 140
Wildlife Habitat Incentives Program (WHIP) cost-share payments	58, 88, 140
Wildlife habitat management 4, 39, 58, 79, 80, 88 Wildlife habitat management expense	39, 79, 88
Windstorms, losses due to	67, 68, 72

Year of cutting 55 Year of deduction for casualty loss and theft	69, 71
Young growth, losses of	70, 72
Young growth subaccount	25, 26, 28, 45, 70