Timber damaged by hurricane, fire, earthquake, ice, hail, tornado, high wind and other storms are "casualty losses" that may allow timberland owners to claim a deduction on their federal income tax returns. But in many cases the specific requirementson loss calculation set by the tax law and rules may actually result in low or no deductions. Deductible casualty loss for timber held for business or investment purpose is the smaller of the adjusted basis of timber and the difference of the fair market value immediately before and after the casualty. Salvage sale is reported separately.
展开▼
