Federal Tax Treatment of Timber Income & Expenses: Quick Reference for 2017 Tax Year

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This quick reference guide is intended to help non-corporate users identify how timber income and expenses are commonly classified and the associated federal income tax forms to fill out based on likely scenarios.

Ownership structure (hobby, investment, business), ownership participation and motive and products sold, among other variables, greatly impact how timber income and expenses are classified and reported to the Internal Revenue Service (IRS).

Users can use the binary decision diagram associated with this guide to answer income classification questions. By answering questions at each level of the diagram, and following the associated pathway, a user will be able to identify how timber income and expenses are commonly treated and the associated forms to fill out.

Download the Resource for the complete fact sheet and a printable version.


Extension State Specialist, Forest Industry
Forest Industry State Specialist/Extension Professor
Phone: (603) 862-2402
Office: UNH Cooperative Extension, Nesmith Hall, Durham, NH 03824