Forest Stewardship Series 22: Forest Taxation, Estate Planning, And
PUBLICATION 8252 FOREST STEWARDSHIP SERIES 22 Forest Taxation, Estate Planning, and Conservation Easements CLARALYNN NUNAMAKER, California Registered Professional Forester, Scotland, UNIVERSITY OF UK; KIMBERLY RODRIGUES, Regional Director, UC Agriculture and Natural Resources CALIFORNIA North Coast and Mountain Region; JOHN LEBLANC, California Registered Professional Division of Agriculture Forester, Garden Valley, CA; GARY NAKAMURA, UCCE Forestry Specialist, Department of and Natural Resources Environmental Science, Policy, and Management, University of California, Berkeley http://anrcatalog.ucdavis.edu Every owner of forestland should understand the different taxes that apply to forest ownership and forestry opera tions, including state and federal income taxes, property tax, and yield taxes (tax applied at the time of harvesting timber). If you want to minimize your taxes, and you are willing to spend some time learning about tax law, doing some bookkeeping, and possibly Objective hiring a qualified accountant to help out, the suggestions in this publica- Understand the variety and tion will likely apply to you. However, situations vary, and you should intent of taxation by federal, consult with a tax professional for specific advice. Enrolled agents (EA) state, and local government as are specialists in federal taxes, although not all are acquainted with for- applied to forest properties. estry issues; they can be found in telephone directories under “Taxes: Consultants and Advisors.” Competencies • Understand the three main types of taxation: income, timber yield, and INCOME TAXATION property. Taxation of income derived from forestry investments is a complex topic • Become familiar with the basic prin- at both the federal and state levels. Tax laws, regulations, and guidelines ciples of recordkeeping as related to are many, detailed, and technical.
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