Taxes and Estate Planning

ESTATE PLANNING

Basics of estate planning and the tools available for family forests.  Webinar presented by Dr. Tamara Cushing for American Tree Farm System.

Ties to the Land is a workshop series originally created at Oregon State University to assist woodland owners in addressing communication issues and the emotional and legal aspects of succession planning. A succession plan is a more effective means for land owners to pass on their legacy than a traditional estate plan. Workshops are occasionally held in various locations throughout Washington so watch the WFFA web site and the WSU Forestry Extension website for future workshops.  Some hints for success and resources are available on the Ties to the Land web site even for those who have not taken the course.

FEDERAL TIMBER TAXES

Publications

Forest Landowners Guide to the Federal Income Tax is a comprehensive manual about forest taxes. Unfortunately it has not been updated since 2000, but the basic principles are still valid.  USDA Agriculture Handbook 718. 171 p.

Web Sites

National Timber Tax Website was developed to be used by timberland owners, as well as a reference for accountants, attorneys, consulting foresters and other professionals who work with timberland owners regarding the tax treatment of timber related activities.  It contains numerous links to publications, webinars and other sources of tax information for forest land owners.

Videos

Presentations by Dr. Tamara Cushing are available for viewing.

WASHINGTON TIMBER TAXES

Forest Excise Tax must be paid on all timber harvested from private land in Washington. The Washington Department of Revenue's Forest Tax web page provides further information on the Forest Excise Tax.

Business and Occupation Tax (B&O) must be paid if the gross receipts from timber harvested exceed $100,000 in a calendar year.   A deduction for the first $100,000 is allowed under the Extracting B&O tax classification, under the "Other" deduction. Write Small Timber Harvester.  Amounts above $100,000 remain subject to B&O tax.