(From the Forest Service, U r S. t>ej>artment of Agriculture ) 



TH^ INC OIK TAX NOT RELEASED ?OR PUBLICATION 



R^coaiiizKs FORESTRY UNTIL JAKUAF.Y 21, 1914. 



Washington, .January 21.. Foresters and lumbermen see 

 in a decision of the Treasury Department in regard to the ad- 

 ministration of the income tax a strong argument for forestry-. 

 As they interpret the opinion of the Treasury officials they 

 understand that no timber lands shall be subject to the tax 

 until the timber is cut and marketed and that then the profit 

 only will be subject to an income tax assessment. In other 

 .words, all costs will be deducted before the tax is levied, 

 and these will cover the cost of growing the timber, includ- 

 ing th^ cost of planting where necessary and of protecting 

 the growing crop from fire and othsr depredation. 



This decision was, based upon a request for informa- 

 tion inade by P, So Ridsdale , secretary of the American forestry 

 association. Ke asked if there would be a tax on the value rf 

 the yearly growth of timber whether it was cut or not, and also 

 whether an income tax would be assessed on the value of the 

 timberland. In reply, the Treasury Department said that "the 

 gain from the cutting and disposal of stumpage is realized in 

 the? year during which the timber is cut and disposed of, and 

 that the amount received in excess of the cost of such timber 

 is profit, and should be so accounted for as income for that 



year. ri 



100 F 



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