WebAug 18, 2006 · [<> Special Rule Relating to Election To Treat Cutting of Timber as a Sale or Exchange.--Any election under section 631(a) of the Internal Revenue Code of 1986 made for a taxable year ending on or before the date of the enactment of this Act may be revoked by the taxpayer … WebSep 29, 2024 · Section 1033 aims to return a taxpayer to the condition they were in previous to the event that gave rise to an involuntary conversion. For these conversions, the value subject to deferral may be impacted by a company with a 631(a) election in place. ... This gain deferral also works if a company has a IRC Subsection 631(a), Timber Capital ...
Sec. 631(b) and the Taxation of Standing Timber Sales
WebJan 21, 2024 · Section 631 of the Internal Revenue Code provides capital gain treatment for timber sales. According to the law, “timber” includes Christmas trees that are more than 6 years old at the time of sale and have been severed at the roots (unfortunately, this means sales of balled & burlapped or potted trees do not qualify for the reduced rates). Web(1) For purposes of section 631 (b) and this section, the date of disposal of timber shall be deemed to be the date such timber is cut. However, if payment is made to the owner under the contract for timber before such timber is cut the owner may elect to treat the date of payment as the date of disposal of such timber. darlington ohio train
Paying Less Tax on Timber Sales – Timber Tax Basics (Part 3)
WebNov 1, 2024 · IRC § 631 provides capital gain treatment for qualifying timber sales. Capital gain treatment is beneficial to forest landowners, especially those that operate their forestland as a business, because of lower capital … Web631 (c) (1) to a person whose relationship to the person disposing of such iron ore or coal would result in the disallowance of losses under section 267 or 707 (b), or 631 (c) (2) to a … WebJan 1, 2024 · Internal Revenue Code § 631. Gain or loss in the case of timber, coal, or domestic iron ore on Westlaw FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. darlington online for intermediaries