sell of tree on land


W

wuffa

I just got a house in portland Oregon last week, there is
about $50,000 of tree on the land I wish to sell the tree
(Black walnut), is it better to wait till I have owned the
house for a year before I sell the tree?

thanks
wheeler

P.S. you all are great help to me thru the years!
 
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D

D. Stussy

wuffa said:
I just got a house in portland Oregon last week, there is
about $50,000 of tree on the land I wish to sell the tree
(Black walnut), is it better to wait till I have owned the
house for a year before I sell the tree?
No, as you are not selling the land that the tree is on.
However, see "depletion" as it relates to timber (or is that
overkill for this situation?).
 
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D

Drew Edmundson

wuffa said:
I just got a house in portland Oregon last week, there is
about $50,000 of tree on the land I wish to sell the tree
(Black walnut), is it better to wait till I have owned the
house for a year before I sell the tree?

P.S. you all are great help to me thru the years!
NC State University has an excellent free publication on the
timber industry available at:

http://www.ces.ncsu.edu/nreos/forest/pdf/ag/ag296.pdf

From your post I assume you will qualify for capital gains
treatment so you should wait until you have held the
property more than a year. You should get an appraiser to
split the purchase price between the house, the land and the
timber; unless you had the foresight to apportion the
purchase price in the contract.
 

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