logging

[AVIERO20]

We purchased property in Vermont in 1993.  In 2000 we had a small timber harvest by a logger and received payment of $7,700.  At tax time our then tax preparer established our “basis” in the land at $87,500 and found that we had no federal or state tax liability for 2000 from logging.

We again logged in 2005 and 2013 with total payment of $37,500 and again the tax preparer found no tax liability for either year.

We recently had a timber harvest in 2022 and received payment of $47,200 and with this latest amount our total logging payments amount to $92,400 so exceeding the “basis” of $87,500.  We assume this will create some tax liability for 2022.   Does it?

We plan on having TurboTax prepare our 2022 return.

[OpeA1]

This forum for answer general tax related questions. Your questions are specific and involve a lot of calculations which, unfortunately, we cannot provide here.

May I suggest you speak to an accountant or a financial consultant. They will be better suited to help you by running all the numbers to better help you with your situation. Also consider using our Mint service.

Thank you!

[Faith C]

Thank you for asking and choosing TurboTax for your tax. We have a great tax calculator that may assist you regarding your tax for 2022 although it may not provide much detailed calculation on your case. However, it is still a great tool for your reference.