Newbie here! Just closed on 80 acres. Question about land clearing...

[mdjohn1427]

Just closed on 80 acres. Timber company will be showing up in the next few weeks to harvest about 45 acres of Timber. After that, I hope to clear that land (in stages) and turn it into pasture/farm land. Suggestions are welcome on how this might be best accomplished. What type equipment do you use?

 

[Piston]

Are they leaving all the stumps and slash?

Just curious, are you using a consulting forester?

 

[dusty3030]

Check with your tax person. You may need to wait a year in order to take it on capital gains rate and not ordinary income rate.

And - congratulations, welcome aboard!

 

[Western]

Congratulations on the purchase!! I think 1st piece of equipment should be a tractor:laughing: I know you're looking, but it will be invaluable to maintaining your new place.

 

[Bob77064]

Congratulations

 

[mdjohn1427]

Are they leaving all the stumps and slash?

Just curious, are you using a consulting forester?

Piston, I'm working witha family friend who is a Timber Broker. I'm assuming that the stumps will be remaining.

 

[mdjohn1427]

Check with your tax person. You may need to wait a year in order to take it on capital gains rate and not ordinary income rate.

And - congratulations, welcome aboard!

Hadn't considered the Tax implications. I'll reach out to my Tax man for advice.

 

[mdjohn1427]

Congratulations on the purchase!! I think 1st piece of equipment should be a tractor:laughing: I know you're looking, but it will be invaluable to maintaining your new place.

Yes Sir...in the looking process. Thinking something in the 50-79 HP range with FIL.

 

[dmccarty]

Hadn't considered the Tax implications. I'll reach out to my Tax man for advice.

Check with your county extension office about timber taxation and valuation. In NC, my county office has a class every few years that is very helpful. They also have information online as well. Our land has a timber valuation which dramatically lowers our tax bill.

Make sure you accountant understands timber taxation. I talked to a couple of CPA's and I knew more about timber taxation than they did. Your timber agent should know of a CPA that understands timber taxes.

Later,
Dan

 

[farmer2009]

I will stay out of timber as I don't know much about the logging side. I always cut my own and called around to see who wanted to pick up a load of x logs. Really only get one company interested each time and they tend to pay top or near top for it.

Since you asked about clearing ground. If they are leaving you the stumps and tops and you plan on getting a tractor close to 80 horsepower with a loader anyways. Then my recommendation is to buy a 4wd one with r1s and a grapple. Use tractor to clean up small stumps and all tops. Then rent a large excavator and dig out all others be sure to get one with a thumb. You can use the tractor to pile the stumps and if some are to big then use excavator to pile those few.