Where do I enter the cost for reforestation in my standard deductions?

Forum|Forum|2 years ago
January 31, 2024
6 replies
46 views

We replanted our entire property and wanting to enter that expense in our taxes. I chose standard deductions and wanted to know what section I would enter this expense?

TurboTax Deluxe Online

TomK2023

Level 15

TurboTax does not support Form T (Timber).

Form T - Forest Activities Schedule - See Part IV Reforestation and Timber Stand Activities

Instructions for Form T (Timber)

Complete the form and attach it to your return You will need to print, sign, and mail your return (How Do I File By Mail in TurboTax Online?).

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PAUL0828

Level 2

That answer is incorrect. You don't need to file schedule T if you just have reforestation expenses. Input them under Business Deductions, Less Common Business situations. Program is supposed to limit the deduction to $10,000 and amortize the excess over 84 months. Apparently it did this correctly on the 2022 program but is not working properly in the 2023 program. It currently is just taking the full amount, even if is excess of $10,000, in error. I called Turbotax about this situation but the program has not been updated to calculate the deduction correctly. Told me to keep checking the updates but nothing has changed.

PatriciaV

Level 15

Reforestation costs are entered in two areas of TurboTax, depending on the total amount you spent.

Up to $10,000 may be entered under Less Common Business Situations >> Business Deductions. Although the program will let you enter any number, the IRS rules limit the deduction to $10,000 in the first year.

Any excess over $10,000 may be entered under the related business or rental property as an Intangible Asset. Use Code 194, which appears in the drop-down under "Select a Code Section." Enter 7 years (84 months) as the period to amortize. TurboTax will calculate the amortization for this year and carry the information over to future tax returns.

This process in TurboTax has been the same for the last several years - you must make the split yourself and enter the correct amounts in each area of the program.

See also: IRS Pub 535, Reforestation Costs in chapter 7.

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