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National Farm & Forestry > Company > Timber As An Investment > Tax Advantages
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Tax Advantages
There are many tax advantages to owning timberland. A timber forest increases in value each year, but no taxes are paid until trees are harvested, at which point gains are taxed at a favorable capital gains rate (capped at 15%). Also important to note is that you do not have to pay self-employment taxes from the harvest.
At the time of your timberland purchase, it is important to conduct a timber inventory to establish the total timber value of your investment. When you sell the timber, the value of the harvested timber is deducted from the total timber value to establish your capital gains.
Your timberlands may also qualify for other tax savings. National Farm & Forestry can advise you on the many other options.
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