1099-misc for Timber Sales instead of 1099S, what to do?

[tbkea]

I recd a 1099-misc for timber sales, listed as royalties & TT  is making me complete a schE for investment inc. I think this should've been reported on a 1099-s &I should complete a ScD. But should I just proceed w/ SchE &write in the cost basis of timber at date of purchase for that deduction? 

[MargaretL]

No- do not proceed with Schedule E, enter the sale in the investment section, Schedule D. 

You can use data entry below or the link instructions.

1. Federal Taxes
2. Wages & Income
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other - Answer No to the 1099-B question; the category is "Everything Else"

https://ttlc.intuit.com/replies/4790586

[tbkea]

OK, thanks! I still have a question. The land with the standing timber was purchased in 2012 (for $100,000, which we paid off the approx $59K balance in 2016 after the sale, and we have a statement from our forestry consultant saying that the value of the timber at that time would have been $142, 490. In 2016, the standing timber was sold as a lump sum sale for $162,000. So, I've been told that I can take the $142, 490 off as the cost basis. I am confused about this and certainly do not want to do it incorrectly!