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?

Forum|Forum|6 years ago
March 25, 2020
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Best answer by George4Tacks

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

IRonMaN

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!

B

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.

BobKamman

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.