Record Keeping is the foundation to managing your financial data, so that you can accurately track your investment profitability and tax liability. The single biggest error that forestland owners in the US make on their taxes is paying too much in taxes. A good set of records will prevent the error from occurring on your property and keep your money where it belongs – in your pocket.
It is wise to write, maintain, and update a forest management plan for your woodlands to document your management intentions and actions both silviculturally and financially. For state and federal tax purposes an estimate of expected future profits in the forest management plan is rec-ommended. Accurate record keeping is essential for all forest landowners. Start keeping records when you first acquire forest land. Keep records of pur-chase price as well as costs of acquisition. These costs include timber cruises, property surveys, attorney fees, and other money spent to acquire the property.