1099S Sale of Timber

[True90]

I sold timber from property we have held for 20 years.  I got a down payment of $5000 in 2023 (the rest $17,000 to be paid when complete (2024).

In Turbo Tax Deluxe, when I choose other for 1099S, it asks questions that don't make a lot of sense for Timber.  Then it wants my numbers to match those I got on a 1099B - I did not get a 1099B.

I am not sure how this should even be entered.  I saw  post from 2019 that said I don't need to claim Timber but I don't know if this is still true.

Can someone help, please?

[Vanessa A · Accepted solution]

You will report it as an installment sale.  If the sale and all payments are being made in 2024, you would simply treat it as a sale.  Since the initial payment was made in 2023, you would include in your income the amount that was received in 2023 on the 2023 return and then what you receive in 24 in your 2024 return. 

To enter this sale in TurboTax you will select the following:

1. Federal
2. Income and Wages
3. Installment Sales Under Miscellaneous Income
4. Walk through and enter all of the information for the entire property
5. Enter the payments received in 2023 
6. TurboTax will do the calculations from there

Be sure to delete the entries for the 1099S

The sale of timber from your personal property is a taxable event, so yes, you would report the income.