Forestry & Timber

Accounting Services for Forestry and Timber

Did you know that forest landowners often overpay on their timber- related income taxes Understanding forestry-specific specialized tax provisions is crucial for optimizing your forest management decisions and ensuring you receive appropriate tax treatment. 

Axley & Rode has vast experience working with clients in the forestry industry and has made it a priority to help clients understand the complicated tax issues surrounding timber. Our experienced team can keep you updated on all timber-related law changes and ensure that you are optimizing your tax situation.

Due to its nature, timber as a business venture has a very long investment period, and trees take time to mature and provide income through logging. However, while the trees are growing, you may still incur annual costs, which means you may have no profits from your timber business while sustaining significant losses through expenses. This unusual circumstance is one of the reasons to have an experienced accountant from Axley & Rode on your team.

We can assist you with the following timber-related issues:

• Casualty losses on timber
• Classifying timber as personal, investment, or business property
• Conservation easements
• Deduction of timber management expenses
• Depreciation, bonus depreciation, and first-year expensing
• Income averaging for farmers
• Installment sales
• Reforestation tax incentives
• Section 1031 exchanges
• Tax treatment of cost-share payments