Skip to Main Content
The impact of federal and state income tax liabilities on timber investments in the Midwest and NortheastAuthor(s): Nathan R. Smith; Philip Bailey; Harry Jr. Haney; Debra Salbador; John Greene
Source: North. J. Appl. For., Vol. 24(4): 245-251
Publication Series: Miscellaneous Publication
PDF: Download Publication (92.5 KB)
DescriptionFederal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 23 states in the Midwest and Northeast to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes ranged from highs of $13,427 for middle-income landowners and $18,527 for high-income landowners in Maine to no tax burden in New Hampshire and South Dakota. Calculated state and federal income taxes are based on 2004 tax regulations and rates. After-tax land expectation values calculated for a forest landowner in the Northern Lower Peninsula of Michigan illustrate the importance of tax planning on returns to a timber investment. The results support the need for adequate tax accounting.
- You may send email to firstname.lastname@example.org to request a hard copy of this publication.
- (Please specify exactly which publication you are requesting and your mailing address.)
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
CitationSmith, Nathan R.; Bailey, Philip; Haney, Harry Jr.; Salbador, Debra; Greene, John. 2007. The impact of federal and state income tax liabilities on timber investments in the Midwest and Northeast. North. J. Appl. For., Vol. 24(4): 245-251
Keywordstaxes, landowner, cost, rate of return, investment
- The impact of federal and state income tax liabilities on timber investments in the west
- Income tax considerations for forest landowners in the South: a case study on tax planning
- Tax Tips for Forest Landowners for the 2012 Tax Year
XML: View XML