The Woodlands property tax calculator: what it tells you and what it misses

Last updated 2026-07-24

What does The Woodlands property tax calculator show you?

Online property tax calculators for The Woodlands, Texas give you an estimate of your annual tax bill by multiplying your home's appraised market value by the combined effective tax rate for Montgomery County. In 2023, that median effective rate was 2.38% ^[1]. If your house appraises at $400,000, the calculator spits out roughly $9,520 per year. The calculator pulls data from the Montgomery Central Appraisal District (MCAD), which sets appraised values every year and publishes them in the spring. You'll see line items for different taxing entities: county, school district (Conroe ISD or Tomball ISD cover most of The Woodlands), Montgomery County Hospital District, Lone Star College, and municipal utility districts. School district taxes typically make up 50-60% of the total. What the calculator won't show is whether any of your land qualifies for a different valuation method. If you own 10, 20, or 100 wooded acres behind your house, the calculator treats it all as residential curtilage, appraised at market value. Texas offers two agricultural-use exemptions that can flip that: 1-d-1 agricultural appraisal and Open-Space (timber production) valuation. Both assess qualifying land on its agricultural productivity value instead of what a developer would pay, and both are explicitly available for timber land ^[2]. The calculator has no idea whether you qualify, because that depends on acreage, use, management history, and an application you file with MCAD.

How much can timber-land valuation actually save in Montgomery County?

Montgomery County's 2024 productivity values for timber land are published by soil capability class. Class I through IV soils (the most productive) are appraised at $250 per acre per year for timber production; Class V through VIII drop to $125 per acre. Compare that to residential land market value, which MCAD typically appraises at $20,000 to $80,000 per acre depending on location and access in The Woodlands area. If you have 20 acres of Class III timber land, your productivity appraisal is 20 × $250 = $5,000 total. At a 2.38% effective rate, that's $119 in annual tax on those 20 acres. If the same 20 acres were appraised at market ($40,000 per acre average), the assessed value would be $800,000 and the tax $19,040. The timber valuation saves you $18,921 per year on that parcel. Over 10 years, that's $189,000 in avoided tax. That's the ceiling. Real savings depend on your soil class, whether MCAD agrees your use is bona fide timber production, and whether you've been in the program long enough to avoid rollback tax (more on that below). A 50-acre tract with mixed soils might see $30,000 to $50,000 annual savings once enrolled. A 10-acre corner lot, if it qualifies at all (minimum acreage is not fixed but MCAD wants to see genuine agricultural use), might save $5,000 to $8,000 per year.

What are the 1-d-1 agricultural and Open-Space timber valuations in Texas?

Texas Tax Code § 23.51 creates the 1-d-1 agricultural appraisal ^[2]. Land qualifies if it's been used for at least five of the past seven years "to the degree of intensity generally accepted in the area" for agriculture, which includes "the production of timber or forest products" ^[2]. You file an application with your county appraisal district; if approved, the land is appraised at its productivity value for that use, not market value. Texas Tax Code § 23.71 through 23.81 creates Open-Space agricultural appraisal, often called Open-Space (timber) when the use is timber production ^[2]. The legal effect is identical to 1-d-1: productivity-based valuation. The difference is administrative. Open-Space was the original program (1978); 1-d-1 came later (1997) as a constitutional amendment. Counties can implement either or both. Montgomery County uses 1-d-1 ag for most agricultural land, including timber. Both programs require that the land's primary use be the qualifying agricultural activity. "Primary" means the land is actively managed for timber production to the degree of intensity typical in the region. For timber, that means a written forest management plan (often prepared by a consulting forester), evidence of site preparation, thinning, or harvest activity, and documentation that you're pursuing income or eventual income from timber, more than letting the trees grow wild while you wait for a subdivision buyer. Montgomery County wants to see a management plan, even though Texas law doesn't technically require a professional forester to write it ^[3]. You apply on Form 50-114 (Application for 1-d-1 Agricultural Appraisal) or Form 50-129 (Application for Open-Space Agricultural Appraisal), available from MCAD ^[4]. Deadline is April 30 of the year you want the appraisal to begin. If you miss it, you can file late until the appraisal review board (ARB) approves the appraisal records for that year, but you'll owe a 10% penalty on the first year's tax savings.

What does "forest management" mean for the 1-d-1 application?

Forest management is the practice of planning and implementing activities to meet specific objectives for a woodland property, typically a mix of timber production, wildlife habitat, water quality, and recreation. For the 1-d-1 agricultural appraisal, the objective that matters is timber production: you're managing the land to grow and eventually harvest commercially valuable wood products. A forest management plan is a written document that inventories what you have (species, stocking, age, site quality), sets goals (sawtimber in 20 years, thinning for oak regeneration, control invasives), and prescribes activities with a timeline (thin in year 3, prescribed burn in year 5, regeneration harvest in year 22). Texas doesn't mandate that a professional forester write your plan for 1-d-1 eligibility, but Montgomery County's appraisers expect a plan that looks credible and uses standard forestry terms. Many landowners hire a consulting forester certified by the Texas Board of Professional Geoscientists to prepare the plan; cost is typically $500 to $1,500 for a 20- to 50-acre tract ^[5]. The plan should document basal area, trees per acre, and species composition (data from a cruise or inventory), and it should prescribe specific silvicultural treatments: thinning, prescribed fire, herbicide for understory control, timber stand improvement (TSI), or final harvest. Include maps, soil data, and a schedule. Update the plan every 5 to 10 years or whenever you do a major harvest or replanting. The Forest Management Bureau is a term sometimes used generically for state forestry agencies' forest management assistance programs, but Texas does not have a unit officially named "Forest Management Bureau." Instead, the Texas A&M Forest Service (TFS) provides forest management planning assistance and a directory of consulting foresters ^[5]. Their wildlife and timber management plans can support your 1-d-1 application. Some states (California, for example) have a Department of Forestry and Fire Protection with a "Forest Management" division, but that structure doesn't exist in Texas. When MCAD asks for a forest management plan, they mean a written document describing your timber-focused activities, not a plan from a specific state bureau.

Do all wooded acres automatically qualify for 1-d-1 in Texas?

No. Three hurdles trip up most first-time applicants: minimum acreage, degree of intensity, and history of use. Texas law doesn't set a bright-line minimum acreage for 1-d-1 timber. Instead, the statute says the land must be used "to the degree of intensity generally accepted in the area" ^[2]. Montgomery County and other urban-edge counties interpret that to mean you need enough land to conduct a real timber operation. In practice, tracts under 10 acres are hard to qualify unless you can show you're part of a larger management unit or you're growing a high-value specialty product (like Christmas trees or landscape trees, which also count as ag). A 10- to 20-acre hardwood or pine stand can qualify if you have a management plan, evidence of thinning or improvement cuts, and records showing you're managing for eventual commercial harvest. Second, the "degree of intensity" test means you can't just own trees. You have to actively manage them. MCAD looks for documentation: receipts for herbicide or prescribed-burn contractors, a written plan with a schedule, photos of thinning or regeneration activity, and ideally a history of timber sales or cost-share work through USDA NRCS or TFS. If the land has been idle for 10 years with no management activity, MCAD will deny the application even if the acreage is large. Third, you need a five-year history. The law requires that the land "has been devoted principally to agricultural use to the degree of intensity generally accepted in the area for a period of at least five of the preceding seven years" ^[2]. If you just bought the property last year, you inherit the seller's use history: if the seller was in 1-d-1 for timber, you can continue it. If the seller had it in residential use, you'll wait five years before you qualify. There is an exception for new land put into ag use (you can qualify immediately if you show you're actively developing it for timber), but MCAD scrutinizes those applications hard.

What is rollback tax and when does it hit you?

Rollback tax is the penalty when land leaves 1-d-1 or Open-Space ag valuation before you've held it in that use for a defined period. Texas law imposes rollback when you change the use of the land to something other than the qualifying agricultural use, triggering recapture of the tax savings you received over the past few years. For 1-d-1, the rollback period is three years ^[2]. If you've had the land in 1-d-1 timber for three full tax years and then you subdivide or build houses, you owe the difference between what you paid (productivity value tax) and what you would have paid (market value tax) for each of the past three years, plus interest at 7% per year ^[2]. If you've been in 1-d-1 for four years and then convert, you still only owe rollback for the most recent three. If you've been in for two years and convert, you owe for those two years. For Open-Space timber valuation, the rollback period is five years ^[2]. Same calculation: difference between productivity-value tax and market-value tax for each of the past five years, plus 7% annual interest. The rollback bill arrives from the county tax assessor-collector as a separate invoice, due within a short window (often 60 days). It's not tiny: on a 20-acre tract that saved $15,000 per year, a three-year rollback is $45,000 plus about $4,700 in interest, total $49,700. Rollback does *not* apply if the use change is beyond your control (condemnation for a public project, for example) or if the new use is another qualifying agricultural use. Selling timber in a commercial harvest also does *not* trigger rollback, as long as the land remains in timber production afterward (you replant or allow natural regeneration and continue the management plan). What triggers rollback is converting the land to residential, commercial, or industrial use, or abandoning agricultural management entirely.

How do you report a timber sale on your federal tax return?

Timber sales receive special tax treatment under IRS rules. The key is that timber is a capital asset if you've held the land (and the timber) for more than one year. When you sell standing timber (a lump-sum sale or pay-as-cut contract), you report it as a Section 1231 gain (long-term capital gain treatment) on Form 4797, Part I ^[6]. You calculate gain as sale proceeds minus your *adjusted basis* in the timber. Adjusted basis is your original cost basis in the timber (allocated from your land purchase price or the cost of planting and growing the stand) plus any capitalized pre-merchantable expenses (site prep, planting, early thinning), minus any prior depletion you've claimed ^[7]. If you inherited the land, your basis is stepped up to fair market value at the date of death, including the timber's value at that time. For a lump-sum sale (you sell the stumpage and the buyer cuts), you report the entire sale price in the year you receive it. For a pay-as-cut contract (buyer pays you as they harvest over multiple years), you can elect to treat each payment as a separate sale, spreading gain over the harvest period ^[6]. You report the sale on Form 4797, line 2 (gains and losses from sale of timber held more than one year). The net Section 1231 gain flows to Schedule D and is taxed at long-term capital gains rates: 0%, 15%, or 20% depending on your total income, far below ordinary income rates ^[8]. If you have Section 1231 losses in the current or prior five years, those losses can offset the gain at ordinary rates first, so keep good records. Do you *have* to pay taxes on timber sales? Yes. Timber sale proceeds are taxable income. The question is the rate: if you've held the timber more than one year and you report correctly, you pay capital gains rates. If you mistakenly report it as ordinary income (some landowners just throw it on Schedule F as farm income), you'll overpay. If you don't report it at all, the IRS will eventually notice (buyers file Form 1099-S for land sales or sometimes 1099-MISC for stumpage), and you'll owe tax, penalties, and interest. How do you avoid capital gains tax on timber sales? You don't, entirely. But you can defer or reduce it. If you reinvest the proceeds in a *Qualified Opportunity Fund* within 180 days, you can defer the gain until 2026 or until you sell the fund investment ^[9]. If you hold the timber until death, your heirs get a stepped-up basis and owe no capital gains tax on the appreciation that occurred during your life (estate tax may apply if your estate exceeds $13.61 million in 2024 ^[10]). If you gift the timber (and land) to a charity, you avoid the capital gains tax entirely and may get an income-tax deduction for the fair market value. None of these eliminate the tax on an outright sale you make and keep the cash from; in that case, you owe tax at capital gains rates.

What records do you need for the IRS and for your MCAD application?

For the IRS, you need documentation of your basis in the timber and proof of the sale. Basis records start with your land purchase settlement statement (showing purchase price and the allocation between land and timber if any), any receipts for site prep, planting, or stand-improvement costs you capitalized, and any prior timber sales or depletion deductions. If you inherited the land, you need the estate's appraisal showing timber value at date of death. If you didn't get a formal timber cruise when you bought the property, hire a consulting forester now to estimate the volume and value of the standing timber; that appraisal establishes your starting basis. For each sale, keep the timber deed or contract, the buyer's check and any 1099 forms, the cruise report showing volume sold, and the contract price per ton or per thousand board feet. File these with your tax return or keep them in a permanent folder; the IRS can audit timber sales for three years after you file, or six years if they suspect you understated income by more than 25% . For your MCAD 1-d-1 application, you need a forest management plan, aerial photos or maps showing the timber stand, and documentation of management activity. That means receipts for forestry services (thinning, prescribed burn, herbicide, planting), records of timber sales with the buyer's name and volume harvested, and photos time-stamped across several years showing the stand's condition and your work. If you participated in a USDA cost-share program (Environmental Quality Incentives Program, EQIP, for example), include the contract and payment records; those prove you're managing the land to NRCS standards . Update your management plan and records every few years. When MCAD sends their periodic use questionnaire (every few years after initial approval), you'll attach current documentation showing ongoing timber management. If you can't produce it, they'll pull your 1-d-1 and send a rollback bill. The WoodlotLedger Current-Use Enrollment & Compliance Kit includes templates for tracking timber basis, organizing receipts, and drafting management activity logs that satisfy both IRS and county appraisal district requirements. It won't replace a consulting forester's cruise or a CPA's tax return prep, but it prepares you for those engagements by organizing the data they need up front.

Can you stack 1-d-1 timber with a homestead exemption?

Yes, but each applies to a different part of your property. Texas offers a homestead exemption that reduces the appraised value of your primary residence by $100,000 for school-district tax and varying amounts for other taxing units (Montgomery County offers a $3,000 county homestead exemption, for example) . That exemption applies only to your home and up to 20 acres of immediately surrounding land used as your residence. If you own 50 acres with a house on 2 acres and 48 acres of timber land in back, you claim the homestead exemption on the 2 acres (or up to 20 acres if your home site is larger) and file for 1-d-1 timber appraisal on the remaining 48 acres. MCAD appraises the homestead tract at market value (minus the exemption), and the 48 timber acres at productivity value. You can't claim homestead exemption on the timber land, and you can't claim 1-d-1 on the homestead curtilage, but you can hold both exemptions on the same overall property as long as the uses are separated. The appraisal district will ask you to delineate the boundary (often they want a metes-and-bounds description or a site plan). Make it clean: the house, yard, barn, driveway, and maybe a small pasture for your horses are homestead; everything beyond the fence or tree line is timber. If you blur it (a 10-acre "yard" that's really just woods), MCAD may deny the 1-d-1 on that 10 acres or deny the homestead expansion.

What happens when you sell land that's been in 1-d-1 timber?

Two things: rollback tax and a new basis question for the buyer. If you sell to a buyer who will continue timber management and maintain the 1-d-1, no rollback occurs. The new owner files a new 1-d-1 application (or a successor-in-interest form if MCAD offers one) and the productivity appraisal continues. You pay no rollback, and the buyer inherits the low valuation from day one. If you sell to a developer or a buyer who won't continue ag use, rollback triggers the moment the use changes. The question is who pays it. Texas law says the rollback is assessed against the person who owned the land when the change occurred ^[2]. In practice, the buyer pays it after closing, but your sales contract should spell out who's responsible. If you sell in January and the buyer subdivides in March, they'll get the rollback bill in late spring. If you agreed in the contract that you'd pay any rollback (rare), they'll come after you. Most contracts say "buyer responsible for any rollback taxes after closing." For federal tax, your sale price is the full market value (what the buyer paid). Your capital gain is sale price minus your adjusted basis in the land (purchase price plus improvements, minus any prior cost recovery or depletion). The fact that the land was appraised low for property tax doesn't change your capital gain calculation. The buyer's basis for federal purposes is what they paid you, not the MCAD productivity appraisal. If you're selling and you've been in 1-d-1 for five or more years, mention it in your listing. Buyers who want to continue timber management see immediate value (lower tax from day one if they qualify). Buyers who will develop see a cost (the rollback bill), so disclose it up front and they'll factor it into their offer.

How does the 1-d-1 appraisal interact with Montgomery County MUD taxes?

The Woodlands is served by more than a dozen municipal utility districts (MUDs) that levy additional property tax to pay for water, sewer, and drainage infrastructure. MUD tax rates in Montgomery County range from 0.30% to 1.10% . Your total effective rate (the 2.38% figure) includes MUD tax if your property lies within a MUD boundary. When MCAD approves your 1-d-1 timber appraisal, the productivity value applies to *all* taxing entities, including your MUD. If your 20 timber acres drop from $800,000 market appraisal to $5,000 productivity appraisal, you save on county tax, school tax, *and* MUD tax. The percentage savings is the same across the board, because each entity applies its rate to the same appraised value. One wrinkle: if your MUD issued bonds recently and those bonds require a minimum appraised value to maintain the district's bond rating, the district can challenge your 1-d-1 at the appraisal review board hearing. That's rare, but it has happened in fast-growing Texas counties where a MUD's tax base suddenly contracts because large tracts go into ag valuation. The challenge seldom succeeds if your timber use is legitimate, but it adds a hearing step. If you're buying land in The Woodlands that's currently undeveloped and you're told "low MUD taxes because no improvements," remember that the MUD tax is based on land value too. A 30-acre vacant tract appraised at $1.2 million ($40,000/acre) in MUD 4 (rate 0.58%) costs $6,960 in MUD tax alone per year. Put that land in 1-d-1 timber at $7,500 productivity value, and the MUD tax drops to $44.

Should you hire a property tax consultant to protest your appraisal?

If your land is in residential appraisal and you're trying to flip it to 1-d-1 timber, a property tax consultant won't help much. They specialize in arguing that your market value is too high (comparable sales, unequal appraisal). They don't typically file or prosecute 1-d-1 applications. You'll do better hiring a consulting forester to write the management plan and working directly with MCAD's ag appraisal staff. If you're already in 1-d-1 and MCAD sends you a notice that they're pulling your ag designation or raising your productivity value, then a consultant or attorney who specializes in ag valuation disputes can be worth it. Fees are often contingent (they take 30-50% of the first year's tax savings if they win). The ARB hearing is informal; you can represent yourself if you have good documentation, but a consultant knows which arguments the board has heard 100 times and which ones win. For routine market-value protests on your homestead, a property-tax consulting firm (there are several in The Woodlands and Conroe) will file the protest for free and take a percentage of any reduction. That can save you $500 to $2,000 per year on a $400,000 home if MCAD initially over-appraised. It's a no-cost, low-effort move. But the big money for woodland owners is getting the land into 1-d-1 in the first place, and that's a forestry and documentation job, not a comp-sales job.

Frequently asked questions

What is the Forest Management Bureau?

"Forest Management Bureau" isn't an official name used by Texas; it's sometimes used informally to refer to a state agency's forest management assistance division. In Texas, forest management planning help comes from Texas A&M Forest Service, which provides landowner assistance, consulting forester directories, and wildlife/timber management plans that support 1-d-1 applications. Other states (California, Oregon) have Departments of Forestry with "Forest Management" divisions, but Texas uses TFS instead.

What is forest management?

Forest management is the practice of planning and carrying out activities to meet ownership goals for wooded land, typically a mix of timber production, wildlife habitat, water quality, and recreation. For a 1-d-1 tax appraisal in Texas, it means you have a written plan that inventories your timber stand, sets objectives (usually commercial timber harvest eventually), and prescribes treatments like thinning, prescribed burns, or regeneration harvests on a timeline.

How do I report sale of timber on my tax return?

You report timber sales on IRS Form 4797, Part I, as a Section 1231 gain. Calculate your gain as sale proceeds minus your adjusted basis in the timber. If you held the timber more than one year, the gain gets long-term capital gains treatment (0%, 15%, or 20% rate). Use Form T (Forest Activities Schedule) to detail depletion and capitalized costs if you have complex stand history. Your CPA or tax software should handle the forms once you provide sale price, basis, and holding period.

How do I avoid capital gains tax on timber sale?

You can't eliminate capital gains tax on an outright timber sale you keep cash from, but you can defer or reduce it. Deferral: reinvest proceeds in a Qualified Opportunity Fund within 180 days (defers gain until 2026 or fund sale). Reduction: hold timber until death so heirs get stepped-up basis and pay zero capital gains on your lifetime appreciation. Elimination: donate the timber and land to a qualified charity, avoiding capital gains and possibly getting an income-tax deduction for fair market value.

Do I have to pay taxes on timber sold?

Yes. Timber sale proceeds are taxable income to the IRS. The good news is that if you've held the timber more than one year, it's taxed as long-term capital gain (maximum 20% federal rate for high earners, often 15% or 0% for lower incomes) instead of ordinary income. You must report the sale on Form 4797 and Schedule D. If you don't report it, the IRS will catch it via 1099 forms and you'll owe back taxes, penalties, and interest.

Do you have to pay taxes on timber sales?

Yes. Every dollar you receive from selling standing timber (stumpage) or harvested logs is taxable. The rate depends on holding period: more than one year qualifies for long-term capital gains rates (0-20%), which are much lower than ordinary income rates. Properly documenting your timber basis and reporting on Form 4797 ensures you pay the lowest legal rate. There's no exemption or exclusion for small timber sales like there is for a primary-home sale.

Do you pay taxes on timber sales?

Yes. Timber sales are taxable at the federal level and (if your state has income tax) at the state level. Texas has no state income tax, so Texas woodland owners only owe federal tax. Report the sale on federal Form 4797 as a Section 1231 gain. Long-term capital gains rates (0%, 15%, or 20%) apply if you held the timber more than one year. Ordinary income rates apply if you held it one year or less, which is rare for timber.

How are timber sales taxed?

Timber sales are taxed as capital gains if you held the timber more than one year. The gain is sale price minus your adjusted basis in the timber (original cost allocated from land purchase, plus capitalized planting and pre-merchantable costs, minus prior depletion). The net Section 1231 gain flows to Schedule D and is taxed at long-term capital gains rates: 0%, 15%, or 20% depending on income. If you held the timber one year or less (rare), it's ordinary income.

How do I report timber sales on my taxes?

Report timber sales on Form 4797, line 2, as a Section 1231 gain. Enter the sale price in column (d), your adjusted basis in column (e), and the difference in column (f). The net Section 1231 gain flows to Schedule D and is taxed at long-term capital gains rates if you held the timber more than one year. Attach Form T (Timber Forest Activities Schedule) if you claimed depletion or capitalized reforestation costs. Keep the timber deed, cruise report, and 1099 forms for your records.

How to report timber sales on tax return?

Use Form 4797 (Sales of Business Property), Part I, to report the sale of timber held more than one year. Enter description, sale date, sale price, adjusted basis, and gain. The gain is treated as Section 1231 and reported on Schedule D as long-term capital gain. If you have complex timber activities (multiple stands, reforestation costs, depletion), complete Form T. Most tax software (TurboTax, H&R Block) has a section for timber sales if you answer questions about forest property.

Can I get 1-d-1 timber appraisal on less than 10 acres in Montgomery County?

It's difficult but not impossible. Texas law has no acreage minimum, but Montgomery County appraisers want to see that your tract is large enough and intensively managed enough to constitute a genuine timber operation "to the degree of intensity generally accepted in the area." A 5-acre tract growing landscape trees or Christmas trees (both count as agricultural timber products) might qualify. A 5-acre mixed-hardwood stand with no management plan likely won't. Prepare strong documentation and expect scrutiny.

What is the deadline to apply for 1-d-1 ag appraisal in Texas?

April 30 of the tax year you want the appraisal to begin. If you miss it, you can file a late application until the appraisal review board approves the appraisal roll for that year (usually late May or June), but you'll pay a 10% penalty on the first year's tax savings. MCAD's agricultural appraisal staff can confirm whether they'll accept a late application; some counties are more flexible than others if you had a good reason for missing the deadline.

Does selling timber trigger rollback tax in Texas?

No, as long as the land remains in qualifying timber production after the sale. A commercial timber harvest (thinning, final harvest with replanting, or natural regeneration) is part of normal timber management. Rollback occurs only when you change the land's use to non-agricultural (residential subdivision, commercial development, or abandoning timber management entirely). Harvesting and replanting is exactly what 1-d-1 timber appraisal is for, so MCAD expects it.

What is the difference between 1-d-1 and Open-Space appraisal in Texas?

Both give you productivity-value appraisal for agricultural land, including timber. 1-d-1 (Tax Code § 23.51) has a three-year rollback period; Open-Space (Tax Code § 23.71) has a five-year rollback. 1-d-1 also has a five-of-seven-year use-history requirement; Open-Space's history requirement is less defined. Montgomery County uses 1-d-1 for most ag, including timber. The valuation and qualification rules are functionally identical; the main difference is rollback length. Most woodland owners prefer 1-d-1 because the rollback exposure is shorter.

Sources

1. SmartAsset, Montgomery County Property Taxes: Montgomery County, Texas median effective property tax rate is 2.38% (2023 data)
2. Texas Tax Code § 23.51, Agricultural and Timber Land Appraisal: 1-d-1 appraisal requires land devoted principally to agricultural use (including timber production) for five of past seven years; rollback is three years
3. Texas Comptroller, Property Tax Forms: Form 50-114 (1-d-1 application) and Form 50-129 (Open-Space application) are filed with county appraisal districts by April 30
4. IRS Publication 544, Sales and Other Dispositions of Assets: Timber held more than one year is reported on Form 4797 as Section 1231 gain, eligible for long-term capital gains treatment
5. IRS Publication 551, Basis of Assets: Adjusted basis in timber is original cost basis plus capitalized improvements minus prior depletion claimed
6. IRS Topic 409, Capital Gains and Losses: Long-term capital gains are taxed at 0%, 15%, or 20% depending on taxable income and filing status (2024)
7. IRS, Opportunity Zones Frequently Asked Questions: Investing capital gains in a Qualified Opportunity Fund within 180 days defers gain until 2026 or sale of fund interest
8. IRS, Estate Tax: Federal estate tax exclusion is $13.61 million per individual for 2024
9. IRS Publication 526, Charitable Contributions: Donating appreciated property (including timber and land) to qualified charity avoids capital gains tax and may allow fair-market-value deduction
10. IRS, How Long Should I Keep Records?: IRS can audit returns for three years after filing, six years if income understated by more than 25%