Adjusted Basis Calculator

Adjusted Basis Allocation Calculator

When you purchased your forestland, you established an original basis—the total amount you invested in the property. That cost must be distributed among the property’s individual assets: land, timber, equipment, and any depreciable real-property improvements (DRPI). Over time, these assets change through harvest, depreciation, and reforestation expenses, creating what is known as an adjusted basis.

This tool from Forest Econometrics allows you to apply your original basis allocation to current fair-market values, showing how each component contributes to today’s adjusted basis. The results help you document depletion, depreciation, and gain or loss for financial or tax reporting.

  1. Enter the yellow fields for current FMV and your total Purchase Price.
  2. Leave the calculated cells blank—they will populate automatically.
  3. Click Recalculate to update results, or Print to save a record.

This calculator is an educational tool for forestland owners and appraisers. For official filings, verify allocations with your tax professional.

Forestland ownership is a business as much as it is a stewardship commitment. When you purchase a tract of timberland, the cost you pay is not a single number—it represents a portfolio of distinct asset classes: land, timber, improvements, and sometimes depreciable real-property infrastructure (DRPI). Properly allocating your purchase price among these assets establishes your original basis, which anchors future depletion, depreciation, and capital-gain reporting. This calculator from Forest Econometrics helps you visualize and document that allocation.

Use the example you reviewed previously as a guide. Enter your estimated fair-market values (FMVs) for each asset and the total purchase price you paid for the property. The calculator determines each component’s share of total FMV and assigns the proportional Original Basis. When complete, you can print the worksheet for your records or share it with your accountant or appraiser.

Asset FMV % of Total Purchase Price Original Basis
1. Land
2. Equipment
3. Timber
4. DRPI
Total

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