Impact of federal and state income taxes on timber income in the northeast and midwest following the 1986 Tax Reform Act

The purpose of this article is to illustrate the combined impact of federal and state income taxes on NIPF owners with timber sale income. It (1) reviews the federal income tax provisions that apply to NIPF landowners; (2) outlines state income tax provisions for the Northeast and Midwest states for 1994; (3) analyzes federal and state income tax liabilities for two NIPF case examples in the Northeast and Midwest; and (4) discusses the benefit of the installment sale tax planning strategy.