This bill amends the tax code to give a special rule for casualty losses of uncut timber. If uncut timber is lost by fire, storm, theft, or other casualty (including wood‑destroying insects, invasive species, or severe drought), the deduction basis for the loss cannot be less than the appraised value of the timber immediately before the loss minus the timber's salvage value. Appraisals must be completed no later than one year after the loss, follow the Uniform Standards of Professional Appraisal Practice (USPAP), be limited to the lost timber's value, and be done by a Federal‑ or State‑certified appraiser. If an appraisal is not ready by the tax return due date, a taxpayer may use an estimate on the return and then file an amended return when the appraisal is finished; taxable income is adjusted by the difference between the estimate and the final appraisal. The rule only applies to timber held to be cut and sold in an active trade or business (not passive activities). The rule includes pre‑merchantable timber. To qualify, the taxpayer must reforest the lost area (hardwoods, softwoods, or both) by planting, seeding, or appropriate site preparation within five years of the loss. The Treasury Secretary will write regulations to recapture any deduction if the taxpayer fails to reforest. The amendment applies to losses in taxable years beginning after enactment.
No publicly available information on government costs or budget effects is included in the bill text. The bill does require certified appraisals and a five‑year reforestation action, which implies costs for obtaining appraisals and carrying out planting, seeding, or site preparation, but the bill does not provide cost estimates.
No publicly available information.
No publicly available information.