Public Laws
Below is a list of recent legislation signed into law by the President that may directly or indirectly impact your timberland and the tax treatment of timber.
Small Business and Work Opportunity Tax Act of 2007 - President Bush signed H.R. 2206, Small Business and Work Opportunity Tax Act of 2007 (SBWOTA) on May 25, 2007. This is the bill that provides continued funding for the Iraq War. Tax reductions totaling $4.8 billion for small businesses were added to counter the economic impact of the increase in the minimum wage. Although the bill doesn't contain any provisions specific to timber activities, if you run a small business and/or are located in one of the Gulf Opportunity Zones you should discuss the changes with your tax advisor. Here's a summary of what we consider relevant changes. Many other sites provide summaries, including CCH.
Tax Relief and Health Care Act of 2006 (P.L. 109-432) - The Tax Relief and Health Care Act of 2006, H.R. 6111, was signed by the Presdient on December 20, 2006. Although it includes provisions that will affect almost every taxpayer in some way, there are no changes to the tax provisions covered by the National Timber Tax Website. Many other sites provide summaries, including CCH.
Pension Protection Act of 2006 (P.L. 109-280) - The Pension Protection Act of 2006, H.R. 4, was signed by the President on August 17, 2006. The primary provisions of interest to timberland owners are those increasing the tax advantages of contributions of conservation easements. There are new advantages for individual taxpayers generally, and additional advantages specifically for both corporate and individual farmers and ranchers. Before explaining the changes, here are the underlying rules for charitable contributions generally...|continue|
Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) - On May 17, 2006 the President signed, H.R. 4297. The major provision affecting timber owners is the extension of the 5% and 15% capital gains rates through December 31, 2010...|continue|
The Gulf Opportunity Zone Act of 2005 (P.L. 109-135) - Timber Owners in Gulf Opportunity Zone, Rita Gulf Opportunity Zone, and Wilma Gulf Opportunity Zone get reforestation and net operating loss help...|continue|
American Jobs Creation Act of 2004 (P.L. 108-357) - Estates Qualify for Reforestation Deduction and Amortization, and Trusts Qualify for Amortization...|continue|