1 / 9

Forest Health Protection Cost Share Tax Update

Forest Health Protection Cost Share Tax Update. Updated August 2009. Dr. Linda Wang. National Forest Tax Specialist USDA Forest Service lwang@fs.fed.us. Forest Health Protection Cost Share. Forest Health Protection program cost share provide treatment for: southern pine beetle

presley
Download Presentation

Forest Health Protection Cost Share Tax Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Forest Health Protection Cost Share Tax Update Updated August 2009

  2. Dr. Linda Wang National Forest Tax Specialist USDA Forest Service lwang@fs.fed.us

  3. Forest Health Protection Cost Share • Forest Health Protection program cost share provide treatment for: • southern pine beetle • western bark beetle • forest diseases • invasive plants • or other major insect infestations

  4. Cost Share Tax Treatment • Generally governmental cost share payment are taxable income • However, qualified cost share payment may be excluded from a taxpayer’s income (Tax Code §126)

  5. Sec. 126 Income ExclusionAn example • Mr. Smith received $3,000 cost share payment (shown on Form 1099-G) from qualified forestry program to manage his timberland. • He may elect to exclude all or part of the $3,000 from his income, using the IRS formula, under the tax regulation of §126

  6. Sec. 126 Income ExclusionExamples of Qualified Programs • Forest Land Enhancement Program cost share • Environmental Quality Incentive Program cost share • Various state forestry programs • Forestry Development ProgramNC • Reforestation of Timberlands Act ProgramVA • Forest Improvement ProgramCA • Forest Renewal ProgramSC • Forestry Development ProgramIL

  7. Filing for Sec. 126 ExclusionForest Health Protection Cost Share • First step The Secretary of Department of Agriculture hasapproved the Forest Health Protection cost share (Tax Code §126 (b)(1)(A)) (USDA Reg. 7 CFR part 14)

  8. Filing for Sec. 126 ExclusionForest Health Protection Cost Share • Second step • The Forest Health Protection cost share program is approvedby the IRS • Revenue ruling 2009-23 was issued by the IRS (IRB 2009-32)

  9. Forest Health Protection Cost Share Approved for Sec. 126 • For more information, please go to www.timbertax.org front page

More Related