New Tax Laws from the 'Fiscal Cliff' Legislation that Affect Forest Landowners

摘要

On January 1, 2013, as part of the deal to avert the "fiscal cliff," Congress enacted sweeping new tax laws. Here are some highlights of the new tax provisions that particularly affect forest landowners and related businesses. Gains from the sale of standing timber held for more than one year from an investment or business holding are subject to more favorable lower tax rates than ordinary income, if they qualify. That is, the maximum tax rate for long-term capital gain is only 15 percent, whereas the top ordinary income tax rate prior to the new law change is 35 percent.