Understanding Casualty Loss of Timber

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Understanding Casualty Loss of Timber

Please use this identifier to cite or link to this item: http://hdl.handle.net/10355/10041

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Title: Understanding Casualty Loss of Timber
Author: Godsey, Larry D., 1967-
Keywords: timberland owners
adjusted basis
fair market value
agroforestry
Date: 2009-09
Publisher: University of Missouri Office of Extension
Abstract: One of the most common questions regarding tax treatment of timber has to do with casualty losses -- the damage, destruction or loss of a property resulting from an identifiable event that is sudden, unexpected or unusual. From a timber investment standpoint, the most common causes of casualty losses are fires, wind storms, ice storms, vandalism, floods and earthquakes. It is important to understand that losses in timber due to progressive deterioration, such as fungus, diseases, insects, worms, or similar pests are typically not considered casualty losses, because they are not sudden, unexpected or unusual. The IRS allows timberland owners to take a deduction on their Federal income tax return for casualty losses. Two major tax concepts are involved in determining a casualty loss deduction: “adjusted basis” and “fair market value.” This guide is an explanation of these concepts and two case studies illustrating their application in determining a casualty loss deduction for damaged timber.
URI: http://hdl.handle.net/10355/10041
Other Identifiers: AF1014

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  • Extension publications (MU) [599]
    The items in this collection are the scholarly output of the faculty, staff, and students of the University of Missouri Extension.

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