Capital Gains Determination
Based on your responses you sold standing timber (stumpage), that was "held primarily for sale to customers in the ordinary course of a trade or business". as a lump sum sale.
The timber that was sold is not considered a capital asset in this situation and as such does not qualify for capital gains treatment. The income received from the sale must be reported as ordinary income on the appropriate business form.
Partnership, S-Corporation, and C-Corporation: Ordinary gain from the sale of standing timber without an installment agreement is reported by completing Part II of Form 4797 (Sale of Business Property). The amount from Form 4797 Line 18 is then carried forward to the appropriate business form; 1065, 1120S or 1120.