Capital Gains Determination
What form of sale did you use?
Lump-sum Sale - A lump sum sale is the outright sale of standing timber for a fixed dollar amount agreed upon in advance. The sale price is not a function of the volume cut.
Section 631(b) - A section 631(b) transaction is one in which you did not receive an up-front lump-sum for the timber but were paid for the timber as it was cut, pay-as-cut contract. A pay-as-cut contract is also referred to as a "disposal with an economic interest retained"