Instructions For Form T (Timber) (Rev. December 2013) - Forest Activities Schedule printable pdf download

Instructions for Form T

Department of the Treasury

Internal Revenue Service

(Timber)

(Rev. December 2013)

Forest Activities Schedule

If you are required to file

capitalized, (b) amortized, or (c)

Section references are to the Internal

Revenue Code unless otherwise noted.

Form T for the current tax

claimed as an ordinary expense.

year (as discussed above

Keep separate records for each

Future Developments

CAUTION

under Who Must File), complete all

unique stand identifier, depletion

For the latest information about

the parts of the form that apply.

account, block, tract, or geographic

developments related to Form T

However, if you are not required to file

area tributary to a mill or mill complex.

(Timber) and its separate instructions,

Form T but have other forest-related

Also, keep records that verify the

such as legislation enacted after it is

activities (reportable in Part I

basis in property for as long as they

published, go to

(Acquisitions), Part IV (Reforestation

are needed to figure the basis of the

and Timber Stand Activities), or Part V

original or replacement property.

General Instructions

(Land Ownership), complete and

attach the appropriate tax form (for

Specific Instructions

Purpose of Form

example, Form 4562 to claim

depreciation) or statement to your

Use Form T (Timber), Forest Activities

Part I. Acquisitions

income tax return to report these

Schedule, to provide information on

Complete this part if you acquired

activities. Also, maintain adequate

timber accounts when a sale or

timber, timber-cutting contracts, or

records as discussed in

deemed sale under sections 631(a),

forest land during the tax year,

Recordkeeping, below.

631(b), or other exchange has

whether the acquisition was by

occurred during the tax year.

purchase, exchange, gift, or

Recordkeeping

For additional information

inheritance.

regarding federal income tax rules for

Maps. Do not attach maps of your

How to Report Acquisitions

reporting forest-related activities, see

timber properties to Form T to

the following publications:

Report acquisitions during the tax

substantiate any claimed deduction

Pub. 225, Farmer’s Tax Guide,

year (whether taxable or not) of

for depletion of timber. Instead, you

timber, timber-cutting contracts, or

Pub. 535, Business Expenses, and

are required to retain records

forest land. Report separately each

Pub. 544, Sales and Other

sufficient to substantiate your right to

acquisition of $10,000 or more.

Dispositions of Assets.

claim the deduction, including a map

(where necessary) to show clearly the

You may combine acquisitions of

Who Must File

location(s) of timber and land

less than $10,000 for each account

acquired, timber cut, and timber and

Complete and attach Form T to your

and omit lines 2 and 3. For an

land sold for as long as their contents

income tax return only if you:

acquisition by gift or inheritance, skip

may become material in the

Claim a deduction for depletion of

lines 4 through 7.

administration of any Internal

timber,

For an acquisition or lease of

Revenue law.

Elect under section 631(a) to treat

timber-cutting rights on a pay-as-cut

the cutting of timber as a sale or

Other business records. You must

basis, except for those under which all

exchange, or

also keep business records to support

cutting is completed within the tax

Make an outright sale of timber

other items reported on your tax return

year, do not complete lines 4 through

under section 631(b).

such as expenses incurred during the

8. Instead, list the provisions of the

tax year for road construction and for

Complete Form T in accordance

purchase or lease agreement,

building drainage structures.

with sections 194, 611, 631, and

including the number of years from

1231, and the related regulations.

the effective date to the expiration

Note. Maintain separate cost

date, annual minimum cut or payment,

Exceptions. You are not required to

accounts for road construction and

and the payment rates for different

file Form T if you only have an

drainage structures, such as ditches

kinds of timber and forest products.

occasional sale of timber (one or two

and canals. For example, for roads

Follow the format of lines 1 through 9

sales every 3 or 4 years). However,

constructed for logging timber or to

on additional sheets if necessary.

you must maintain adequate records

conduct management activities on fee

of these transactions and other

land or land held under long-term

What Is Included in Each

timber-related activities during the

cutting contracts, maintain records

Account

year, as discussed in Recordkeeping,

showing the number of miles

You must include your timber in one

below. These transactions may be

constructed and how the total

or more accounts. Generally, each

treated as an investment for tax

expenditures were either (a)

account must include all your timber

purposes if your property is not held

for use in a trade or business.

Jun 20, 2013

Cat. No. 39879B

Instructions For Form T (Timber) (Rev. December 2013) - Forest Activities Schedule

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