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I have a new client that has 1099-S for sale of stumpage on main property. doing the sched D and 4797. how do i figure cost basis?

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George4TacksAnswer

Level 15

No, the one I saw specifically mentioned stumpage, which made me think of Long John Silver.

Argh, Matie! I searched and found the following points of interest:

https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_3.pdf AND https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_2.pdf

ALSO https://www.irs.gov/instructions/it and the related code https://www.law.cornell.edu/uscode/text/26/631

Answers are easy. Questions are hard!

Level 15

If they had a valuation done of the property when it was purchased showing the value of the timber you are in like Flint. If not, you may have to show zero basis.

Slava Ukraini!

bryan-fliegelAuthor

Level 3

Thanks IRonMan...They didn't have the valuation on the timber done... Most properties in our area of northern MI don't... But I appreciated the response it was helpful.

Level 15

Someone else asked that question a few weeks ago and a practitioner who deals a lot with stumpage posted a great answer. Unfortunately, the Search function here sucks, so you will never find it, unless it only appears on even days and you try again tomorrow.

Level 15

This one? https://proconnect.intuit.com/community/proseries-discussions/discussion/sale-of-cut-timber/00/62917

Schedule T did not make it into that conversation and I believe it should have.

https://www.irs.gov/instructions/it

Answers are easy. Questions are hard!

Level 15

No, the one I saw specifically mentioned stumpage, which made me think of Long John Silver.

Level 3

I think this is the one:

https://proconnect.intuit.com/community/proseries-discussions/discussion/re-stumpage/01/66744#M37354

Level 15

@btks How did you find that? Have to buy stock in Intuit?