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summerdreams_3
New Member

We got a 1099-Misc from the sale of pine trees that were on our property. How do we report this?

It was less than 2 acres of pine.
1 Best answer

Accepted Solutions
AnnS7
New Member

We got a 1099-Misc from the sale of pine trees that were on our property. How do we report this?

If you received money from the sale of timber, you'll probably get a Form 1099-S. Sometimes though, it's reported on a Form 1099-MISC. 

Regardless of which form you received, timber income is reported in the Investment Income section.

  1. Click on the Federal Taxes tab, then  Wages & Income.
  2. Scroll down to the Investment Income section and click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.
  3. If you haven't entered any investment sales yet you will see a screen Did you sell any investments in 2016?  Click on Yes
  4. If you have entered investment sales you will see a screen:  Here's the investment sales info we have so far.  
    Click on the link +Add More Sales link
  5. On the screen Did you get a 1099-B. . . , click on No.
  6. For Choose the type of investment you sold select Everything else and click Continue.   
  7. Carefully work through the following screens.

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3 Replies
AnnS7
New Member

We got a 1099-Misc from the sale of pine trees that were on our property. How do we report this?

If you received money from the sale of timber, you'll probably get a Form 1099-S. Sometimes though, it's reported on a Form 1099-MISC. 

Regardless of which form you received, timber income is reported in the Investment Income section.

  1. Click on the Federal Taxes tab, then  Wages & Income.
  2. Scroll down to the Investment Income section and click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.
  3. If you haven't entered any investment sales yet you will see a screen Did you sell any investments in 2016?  Click on Yes
  4. If you have entered investment sales you will see a screen:  Here's the investment sales info we have so far.  
    Click on the link +Add More Sales link
  5. On the screen Did you get a 1099-B. . . , click on No.
  6. For Choose the type of investment you sold select Everything else and click Continue.   
  7. Carefully work through the following screens.
gregmelissasmith
Returning Member

We got a 1099-Misc from the sale of pine trees that were on our property. How do we report this?

@AnnS7 Thank you. This was helpful for our tax situation this year. We received a 1099S for the sale of timber on some land we inherited. I have a follow up question I have not found elsewhere. On the turbo tax screen I need to report the sale proceeds, which aligns with box 2 (gross proceeds) on the 1099S. I do not know what the logger's profit was as it was deducted from the gross proceeds. How do I complete the "Costs or other basis" section in turbotax? Do I need to contact the logger for that information to complete it?  

Hal_Al
Level 15

We got a 1099-Misc from the sale of pine trees that were on our property. How do we report this?

Your cost basis for a timber sale  is usually zero.  The logger's profit is irrelevant.  Timber basis is not the cost of the property. For a discussion on Timber Basis, see https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_2.pdf

 

If the decedent was carrying a timber cost basis (unlikely) and you have those records,  your cost basis will "step up" to fair market value on the date of death.  In that case, you would likely have no gain or even a capital loss for tax purposes. 

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