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Income Tax for Timber Operations

Tax Workshops for Landowners &
Their Foresters, Accountants, & Attorneys

  • Is your timberland a hobby, an investment or a business?
  • Did you know that your depletion allowance changes from one year to the next?
  • Do you know the benefit of using "separately identifiable properties?"
  • Do you know what costs can be expensed and which must be capitalized?

The Alabama Cooperative Extension System is offering Timber Tax Workshops at eight locations around the State. The 6-hour daytime program examines timber tax issues and also includes a discussion of the Forms used to report transactions to the IRS. See the agenda below for more detail on the topics covered. See second table below for currently scheduled dates and locations.

Time Topic
8:00 – 8:30 a.m. Registration
8:30 – 10:00 a.m.
  • Hobby, Investment or Business
  • Acquiring timberland and determining basis
  • Allocation of basis between land and timber
  • Timber accounts
  • Form T, Part I
10:00 – 10:15 a.m. Break
10:15 – 11:45 a.m.
  • Calculating depletion allowance
  • Form T, Part II
  • Reporting timber sales
  • Qualification for capital gains treatment
  • Form T, Part III and Form 4797
11:45 – 12:45 p.m. Lunch
12:45 – 2:15 p.m.
  • Tax treatment for site preparation and planting, fertilization, surveys, roads consulting foresters, etc.
  • Form T, Part IV
2:15 – 2:30 p.m. Break
2:30 – 4:30 p.m.
  • Casualty losses
  • Passive activity, sale and exchange of land and 1031 exchanges

Locations, Dates, and Registration

Registration Fee: The registration fee for landowners is $25. The registration fee for foresters (CFE) and loggers (PLM) who will receive 6.5 hours of continuing education is $40. The registration fee for accountants (8 hours CPE) and attorneys (6.5 hours of CLE) is $100.

TO REGISTER: (1) online and pay via credit card, click the Register link for your preferred workshop below; or (2) mail a check to 301 O. D. Smith Hall, Auburn University 36849-5608 made payable to Auburn University specifying the location and workshop; or (3) call (334) 844-5100 to register by phone.

Online Registration

Date County Location Contact
August 18, 2017 Baldwin Five Rivers Delta Center
30945 Five Rivers Blvd.
Spanish Fort, AL
Beau Brodbeck
(251) 259-6507
August 22, 2017 Chilton Alabama Power Company Building
2030 7th Street S.
Clanton, AL
Gay West
(205) 280-6268
August 29, 2017 Choctaw Extension Office
218 S. Hamburg St.
Butler, AL
Jacqui James
(205) 459-2133
August 31, 2017 Crenshaw Tom Harbin Ag Center
816 Airport Road
Luverne, AL
Derek Bryan
(334) 335-6312
September 7, 2017 Lauderdale Extension Office
802 Veterans Dr.
Florence, AL
Heidi Tilenius
(256) 766-4846
September 12, 2017 Talladega Extension Office
130 N. Court St.
Talladega, AL
Henry Dorough
(256) 362-6187
September 14, 2017 Barbour Extension Office
525 School Street
Eufaula, AL
Allie Corcoran
(334) 687-5788

Instructor: Robert A. Tufts

Robert is an Emeritus Professor at Auburn University where he taught for 36 years. He is currently a Visiting Professor with the Alabama Cooperative Extension System. He earned a B.S. and M.S. in forestry from Louisiana State University and a Ph.D. in forestry from Virginia Tech. Robert has been an attorney since 1997 after earning a J.D. from Jones School of Law, Faulkner University and later an LLM (in taxation) from the University of Alabama. Robert teaches classes and presents workshops on estate planning, agricultural law and tax, property law, choice of business entity, and taxation of timber. He also has a part-time law practice concentrating in estate planning, tax and issues affecting landowners.