Forestry 101: Taxes

There are many tax implications that come with owning and managing forestland. However, North Carolina and the federal government offer a variety of tax incentives, tax credits and tax deductions to qualifying woodland owners.

Under North Carolina’s Present-Use Value Program (PUV), forestland is taxed at a substantially lower rate based solely on its ability to produce income from timber. North Carolina’s Forestry Present Use Valuation (PUV) Property Tax Program covers the major provisions of the law, forestry qualifications, and eligibility requirements for deferring property taxes through the forestry PUV program. The interpretations are based on administrative guidance from the N.C. Department of Revenue as of January 2019.

Tax Tips for Forest Landowners for the 2023 Tax Year is intended to assist forest landowners and their tax advisors in preparing their 2022 Federal income tax returns. It can also help plan for future years. This material is for information and educational use only and is not intended as financial, tax, or legal advice. Please consult with your tax advisor concerning your particular tax situation. The information is current as of January 2024.

The Woodland Stewards Forestry Taxes: Learn, Plan & Save Money webinar series helps landowners understand how timber expenses should be reported, and how they are taxed. Webinars in the series are:

• Seeing the Forest for the Trees: An Overview of Forestry Taxes
• Basics of Timber Basis: Re(setting) the Table
• Timber Management Expenses and Deductions
• Keeping More of Your Timber Income Following a Timber Sale
• Coping With Losses from Nature and Chance

 

For additional information visit the full tax section of our website.