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Minimizing Federal Income Tax for Forest Landowners

Tax law changes effective since 2004 provide new ways to write off reforestation expenses. Here's some info on how the rules work. May 19, 2007

Courtesy of Michigan State University

By Karen Potter-Witter, Department of Forestry, Michigan State University and William L. Hoover, Department of Forestry and Natural Resources, Purdue University

This bulletin provides a general guide to federal income tax for forest landowners. It discusses only income tax items specific to timber growers or with which timber growers generally have problems in preparing their income tax returns. It specifically includes changes that have occurred as a result of the American Jobs Creation Act of 2004 (AJCA, H.R. 4520). Landowners should use this material in consultation with their tax preparer or accountant to plan their forest management to maximize after-tax income and minimize after-tax costs. It is not intended to substitute for legal counsel.

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Minimizing Federal Income Tax for Forest Landowners

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