So purchased 22 acres of forest land in May 2022 that was and will continue to be in State property taxes deferral (except 1 acre) . It purchased it with intent to continue as forest land. It was harvested before we purchased it but replanted or fully cleaned up.
We plan to replant after slash burning (fall of 2022) treating for weeds in 2023, thinning out left over dead trees and replanting in 2024. We also will be doing road improvements into the property. We have a new Forest Management Plan with cost share costs.
After researching on how to report the expenses for this still unsure. I want to get this set up correctly now.
I'd say we are probably investment class since the trees we plant will be harvested 30 + yrs. I know the road cost will be added to our land cost basis and that current our timber land basis is concerned $0.
What I've read is there is up to $10,000 each year that can be reported as expenses. How and where do I report this properly?
