You can subtract the value of the timber when you first purchased or inherited your woodlot – your "basis" – from your taxable income when you have a timber sale. This reduces your taxable income. If you don't know your woodlot's basis, a consulting forester can help you determine it.
This video provides an overview of timber taxes. Dr. Yanshu Li, Associate Professor, Forest Economics & Taxation Outreach Specialist- University of Georgia, discusses timber taxation, economic issues and benefits related to forest investment and management, and more.
