Skip to Main Content
U.S. Forest Service
Caring for the land and serving people

United States Department of Agriculture

Home > Search > Publication Information

  1. Share via EmailShare on FacebookShare on LinkedInShare on Twitter
    Dislike this pubLike this pub
    Author(s): Nathan R. Smith; Philip Bailey; Harry Jr. Haney; Debra Salbador; John Greene
    Date: 2007
    Source: North. J. Appl. For., Vol. 24(4): 245-251
    Publication Series: Miscellaneous Publication
    PDF: View PDF  (92.5 KB)

    Description

    Federal 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.

    Publication Notes

    • You may send email to pubrequest@fs.fed.us 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.

    Citation

    Smith, 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

    Keywords

    taxes, landowner, cost, rate of return, investment

    Related Search


    XML: View XML
Show More
Show Fewer
Jump to Top of Page
https://www.fs.usda.gov/treesearch/pubs/33000