WebTo calculate the depletion unit rate, divide the original basis — or the adjusted basis, if the timber has grown or changed in some other way over time — by the current volume in the account: $49,819.60 ÷ 19,000 board … WebNov 2, 2002 · Federal income tax for our example would be paid on the net taxable gain as shown below: Gross gain from timber sale:$20,000. Less: Consulting forester fee ($ 2,000) Depletion deduction Allowance ($11,400) Net taxable gain: $ 6,600. If you fall into the 28% federal income tax bracket, your action of establishing the cost basis in your timber ...
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WebApr 6, 2024 · Basis is generally the amount of your capital investment in property for tax purposes. Use your basis to figure depreciation, amortization, depletion, casualty losses, … Webtimber based on their FMVs. Therefore, the original basis for timber was $22,000 [= $33,000 x ($20,000 / $30,000)]. The basis for the land was $11,000. “Timber depletion … how far away is montgomery al
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WebIf, for any taxable year beginning in 2016, a corporation has both a net capital gain and qualified timber gain—. (A) subsection (a) shall apply to such corporation for the taxable year without regard to whether the applicable tax rate exceeds 35 percent, and. (B) the tax computed under subsection (a) (2) shall be equal to the sum of—. (i ... WebSep 29, 2024 · Determine the tax basis in the damaged property. ... What adjustments are taken into account for determining the value of burned timber? ... representing a decline in fair market value of $600,000. The … WebTimber Excise Tax Tax Reference Manual Page 116 RCW Chapter 84.33 Tax Base The stumpage value of timber harvested for sale or commercial/industrial use. There are three methods of determining stumpage values for certain types of harvests: Small harvesters - persons who cut less than 2,000,000 board feet in a calendar year: how far away is monticello