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Taxmap/pubs/p535-039.htm#TXMP6c3c3248 Reforestation Costs

Reforestation costs paid or incurred before October 23, 2004, must be capitalized unless an election is made to amortize them. You can choose to deduct up to $10,000 of qualifying reforestation costs paid or incurred after October 22, 2004 for each qualified timber property. The remaining costs can be amortized over an 84-month period. See chapter 9 for more information on amortization of reforestation costs.

Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. Qualified timber property is property that contains trees in significant commercial quantities. See chapter 9 for more information on qualifying reforestation costs and qualified timber property.

Taxmap/pubs/p535-039.htm#TXMP3fdb5be9 How to make the choice.

You choose to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred.

For additional information on reforestation costs, see chapter 9.

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