I have received around 70000 dollars from trees being sold. Do I claim the money as a capital gain?

Question

Also, can I gift money to my kids and use it as a deduction? If so how much?

Answer 1

You cannot count a gift to your kids as a deduction.

Check to see if they are still allowing a 3 year income averaging for farmers and if lumber would fall into that category. This way you could spread out the 70,000 over 3 years and possibly reduce the tax rate.

Answer 2

well initially you would declare it as income. but you would do your financial statement to, also, declare how much it cost you to reap what you sewed. it's called a balance sheet. if you aren't familiar then i would seek the assistance of an accountant.

these things are not so cut and dry all the time you need to cover your a ss so it don't get whupped.

Answer 3

If all you made was $7000, no...but if you made over a certain amt then yes.

You can gift relatives $10,000 a yr (each) without penalties...