Capital Gains Determination
The next item to consider for a Section 631(a) transaction, "election to treat the cutting as a sale," is whether you owned or had a contract right to cut the timber.
Section 631(a) treatment is available for timber which you owned outright (fee simple interest) or had a contract right to cut. You have a contract right to cut timber if you have the unrestricted right to sell the timber cut under the contract on your own account or to use use it in his own trade or business. Therefore a person who only provides a logging service for another does not qualify.
Did you own or have a contract right to the timber?