Bill > S2768

This bill, the Disaster Reforestation Act, amends the Internal Revenue Code to provide a special rule for certain casualty losses of uncut timber. The key provisions are: 1. It allows taxpayers to deduct the appraised value of uncut timber that was lost due to a casualty event (e.g., fire, storm, theft) minus the salvage value of the timber, even if the basis of the timber is lower. 2. It requires the appraisal to be conducted by a certified appraiser, follow professional standards, and be completed within 1 year of the casualty loss. Taxpayers can provide an estimate of the value initially and then file an amended return once the appraisal is complete. 3. The deduction is only available for timber held for sale in a trade or business, not for personal timber. 4. The deduction is contingent on the taxpayer reforesting the lost timber within 5 years of the loss. The amendments apply to losses sustained in taxable years beginning after the date of the bill's enactment.