People, particularly forestry folksBy: Amos S. Eno
I have been trying to ascertain for months whether the conservation easement deductions provided in the 2008 Farmbill apply to forest landowners. According to an email received this week, thankfully from Chris Adamo on Senator Stabenow's staff, forest lands are applicable for the full deductions. This represents a significant opportunity. Take note.
IRC section 170(b(1)(E)(v) defines “qualified farmer or rancher” as “a taxpayer whose gross income from the trade or business of farming (within the meaning of section 2032A(e)(5)) is greater than 50 percent of the taxpayer's gross income for the taxable year.”
IRC section 2032A(e)(5) states:
(5) Farming purposes. The term "farming purposes" means--
(A) cultivating the soil or raising or harvesting any agricultural or horticultural commodity (including the raising, shearing, feeding, caring for, training, and management of animals) on a farm;
(B) handling, drying, packing, grading, or storing on a farm any agricultural or horticultural commodity in its unmanufactured state, but only if the owner, tenant, or operator of the farm regularly produces more than one-half of the commodity so treated; and
(C) (i) the planting, cultivating, caring for, or cutting of trees, or
(ii) the preparation (other than milling) of trees for market.