In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
-
“I’ll choose what I work on” Button
Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds,
Other (Timber is other)
.
The sale of timber is considered a capital gain. Cost basis for timber is usually zero. Timber basis is not
the cost of the property. If the decedent was carrying a cost basis, for the timber, then you would not have a zero basis, and would be allowed a step up to market value, which would result in no capital gain. For a discussion on Timber Basis, see https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_2.pdf
