Tax Tips for Forest Landowners for the 2008 Tax Year

摘要

If you have held standing timber for over 12 months, income from the sale or disposal of the timber generally qualifies as a long-term capital gain. This is an advantage since, among other reasons, long-term capital gains are taxed at lower rates thanordinary income and are not subject to self-employment tax. Short-term capital gains are taxed at the same rates as ordinary income. For most individual forest landowners, the tax rate for long-term capital gains is 15 percent. From 2008 to 2010, however, a special o percent rate applies to long-term capital gains which, when added to your ordinary income fit under the ceiling for the 15 percent bracket for ordinary income (32,550 dollar for single taxpayers, 65,100 dollar for married taxpayers filingjointly). Also, income from timber which a C corporation has held for more than 15 years is subject to a 15 percent capital gains tax rate, effective one year beginning on May 22, 2008.