FORESTRY UPDATE 3-8

By Gary Allen Burns, Consulting Forester

For federal income tax purposes, your cost basis for your timber is the value as of the date of purchase. For inherited property, the basis is as of the date of death (step up in basis). A professional appraisal as of the date of death is usually recommended. For gifted property (received as a gift), the original basis of the gift giver transfers to the gift receiver.