Income Tax Recognizes Forestry 



FORESTERS and lumbermen see in a decision of the 

 Treasury Department in regard to the administration of 

 the income tax a strong argument for forestry. As they 

 interpret the opinion of the Treasury officials they understand 

 that no timberlands shall be subject to the tax until the tim- 

 ber 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, including the cost of 

 planting where necessary and of protecting the growing crop 

 from fire and other depredation. 



Forestry Secretary Makes Request. 



This decision was based upon a request for information 

 made by P. S. Risdale, secretary of the American forestry 

 association. He asked if there would be a tax on the value of 

 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." 



California led last year in timber sold from national forests, 

 though Montana had the largest number of sale transactions. 



Dr. B. E. Fernoiv, dean of the forest school of the University 

 of Toronto, and Bristow Adams, of the U. S. forest service, have 

 just been elected president and secretary, respectively, of the 

 Society of American Foresters, the only organization of profes- 

 sional foresters in the Western hemisphere. 



28 



