"Stuart Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9A33D31041DD3avocatstuyahoofr[at]130.133.1.4...
- quote -

I meant for a small amount you are likely to get for an easment, why bother
to follow the IRS approach?

But, now that you bring it up, unless you get a lot of money for an easment,
it is just a cloud on your title that can hinder future use. Best to just
say no (unless you are obligated to grant an easement).


- quote -

this might depend on the nature of the trees, no? Timber (non crop?) vs.
Christmas Trees (crop?). I'm just guessing here, research would be needed.

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"inky dink" <isisis[at]skl.not> wrote:
- quote -

I think you're right (if you get cash now, you should pay tax on it
now), but why not sell an easement? It should be capital gain
property, less the pro-rated basis.

My problem is with the trees. I suspect that depending on the facts
it could either be considered capital gain property or ordinary
income (like sale of crops). I've seen this issue come up concerning
income in respect of a decedent, and suspect it could play a part
here, as well.

Stu

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"Martin Golding" <fogobum[at]comcast.net> wrote in message
newsan.2008.01.29.02.16.45[at]comcast.net...
- quote -

I thought the IRS took the position that you need to prorate the basis to
determine the basis of the easement, and then pay tax NOW. Why anyone would
do this, unless the easement sold for a ton of money, is beyond me.

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On Fri, 25 Jan 2008 17:43:00 -0500, nebo-- wrote:
- quote -


You say "trees and easement". Hopefully, you know how much for
which. Presumably, you didn't sell the whole property. Unless
your basis is less than the price paid for the easement, all
you have is an adjustment to basis. When you sell, your capital
gains (if any) will go up by the amount of the easement. (If you
DID buy the property for less than you got for the easement,
the _difference_ is capital gains now, and your basis when you
eventually sell will be zero).

I have no recommendation for the tree income. You might be
able to treat it as capital gains and deduct the original
purchased value (or installation cost) of the trees,
but timber rules are extensive and specialized. Unless it's
large enough make it worth seeking out a professional, I'd
treat that part as ordinary income.

Martin
--
Martin Golding | When it comes to finances, remember that there are
DoD #236 | no withholding taxes on the wages of sin. (Mae West)
fogobum[at]comcast.net Vancouver, WA

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On Jan 25, 5:43 pm, neb...[at]excite.com wrote:
- quote -


After the transaction is completed, it is what it is.
Planning is done before the transaction is completed, with your CPA/
taxadvisor & attorney.



___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----



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<nebo--[at]excite.com> wrote:

- quote -

For future reference, by the time you're looking at a transaction in the
rear-view mirror, it's usually impossible to affect the tax treatment of it.
The time for asking these questions is before you act, not after.

Your wife may want to work with a tax professional to make sure that she
correctly determines her taxable gain from these transactions.
--
Phil Marti
Clarksburg, MD

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On Jan 25, 5:43*pm, neb...[at]excite.com wrote:
- quote -

Sorry, but no.

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I have a question about how to benefit the best from the sale of
tangible and intangible property. My wife sold trees and right of way
(easements) for $15,000.00. Is there a way to reduce the amount of
tax we will have to pay on that by, say gifting the proceeds? Not as a
charity gift but either a spousal or children gift of the proceeds.
Thanks for any help anyone may or may not be able to provide me.

nebo

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >