Woodlot

[alderman]

I recently retired from a paper mill and I have a chance to buy a 40 acre woodlot as a hobby/business. Also it has limited access to bordering state property and can be used for my other hobbies, hunting and shooting.

The property has been logged recently but there are several decks of firewood waiting to be cut.
If I buy the property to reestablish the woodlot and cut the firewood, are there any advantages to forming a business? I realize profit is not going to be for many years but would like some tax advantages as I tend to it and get it ready to pass on.


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[svk]

Short answer yes establishing a tree farm business is a great way to write things off, however you need to have an accountant who is on board to proactively help you as there are income requirements that must be met or you are putting a target on your back for an audit.