Tax filing question - 1099S from Timber income (taxes, claim, year)

[Rudy53420]

I recently received income from timber being cut down on my land. The vendor sent me a 1099-S for the full amount but the contract is for 2 years and they haven’t started yet. Anyone have any tips for how to claim this on my 2019 taxes?

I’ve looked into it and I would consider this a capital gain, but I’m not sure how to spread the income over the contract.

A local tax accountant told me to request an amended 1099, but I know one of the owners of the company and doubt he would do that.

Any help is greatly appreciated.

[MrRational]

Originally Posted by Rudy53420

I recently received income from timber being cut down on my land.

The vendor sent me a 1099-S for the full amount but the contract is for 2 years
and they haven’t started yet. Anyone have any tips for how to claim this on my 2019 taxes?

Have you received the money noted on the 1099?

[Rudy53420]

Originally Posted by MrRational

Have you received the money noted on the 1099?

Yes, they paid in full up front when I signed the contract.

[reed303]

You may want to try reading the IRS's guidance on timber sales, especially what's called "outright sales" at
https://www.irs.gov/publications/p54...blink100072537

Then find a tax advisor familiar with timber sales tax rules.

[Rudy53420]

Originally Posted by reed303

You may want to try reading the IRS's guidance on timber sales, especially what's called "outright sales" at
https://www.irs.gov/publications/p54...blink100072537

Then find a tax advisor familiar with timber sales tax rules.

Great advice, thanks!

I downloaded a Form 4797 but need to look into it...this definitely helps.