Bill > S1141

This bill amends the Internal Revenue Code to create a special tax deduction rule for timber owners who experience casualty losses of uncut timber from events like fires, storms, theft, wood-destroying insects, invasive species, or severe drought. Under the new provisions, timber owners can deduct a loss amount based on the difference between the timber's appraised value immediately before the loss and its salvage value. The appraisal must be completed by a certified professional within one year of the loss and conform to Uniform Standards of Professional Appraisal Practice (USPAP). If an immediate appraisal is not possible, taxpayers can file an estimated tax return and later amend it with the final appraisal. To qualify for the deduction, the timber must be held for commercial sale (not as a passive investment) and must be reforested within five years of the loss using hardwoods, softwoods, or a combination. If reforestation does not occur, the tax benefit may be recaptured. The bill applies to losses sustained in taxable years following its enactment and is designed to provide financial relief and incentivize reforestation for timber owners affected by natural disasters or environmental challenges.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1141/all-info