I own land and sold the trees off of it.Do I pay capital tax on that?

[Hal_Al · Accepted solution]

Yes, The sale of timber is considered a capital gain.

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)

Select "No financial institution". Cost basis for timber is usually zero. 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

Reference:http://www.timbertax.org/developments/Federal%20Income%20Tax%20on%20Timber-%20A%20Quick%20Guide%20fo...