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Where do I enter income from a timber sale?

SOLVEDby TurboTax642Updated 7 days ago

If you received money from the sale of timber, you'll probably get a Form 1099-S. Some people will get a 1099-MISC, which is (technically) the wrong reporting form per the IRS.

You'll report this money as investment income. Follow these steps:

  1. Open (continue) your return in TurboTax
  2. In the search box, search for investment sales then select the Jump to investment sales
  3. Answer Yes to the question Did you have investment income in 2022? (or Okay! to Time to kick off your investments!)
    • If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments
  4. Follow the on-screen instructions to either import your investment sale info or enter it in your return yourself
    1. If you choose not to import your form, on the OK, let's start with one investment type screen, select Other

For your cost basis, most people will enter a 0, but you could enter what you originally paid for the seedlings or saplings.

TurboTax doesn't support IRS Form T (Timber)but you probably don't need this form. According to the IRS, it's only needed ...when a sale or deemed sale under sections 631(a), 631(b), or other exchange has occurred during the tax year.

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