Avast Ye Scurvy Dogs!

Hi all –

I had just enough time to make a quick video on a subject that comes up a lot – the tax laws that apply to finding treasure.

I know, I know! It’s about time!

I didn’t really edit this video’s captions, so if there are typos, sorry – I’m pretty busy!


Here is a link to Reg. 1.61.


Taxes are indeed Taxing

Hello Blog readers!

I am having a great week – I hope all of you are having as much fun as I am – although you might actually be doing things “normal people” consider fun.

I, on the other hand, am writing a comprehensive tax research paper for a client on recent US Tax Court rulings on Sub Chapter S-Corporations in relation to distributions made to shareholders, expense items considered “disguised” distributions and cases when personal use of inventory is considered a distribution to a shareholder. Additionally, the substantiation accepted by the US Tax Court to prove the validity of distributions made to the shareholders. I am not writing an opinion on anything specific, it’s more like an explanation of the rulings of the court – merely stating the circumstances of the case and the way the court treated the information provided in context of the case.

Pretty fun..huh…

Usually people hire me to give an opinion on something specific – if a situation or proposed tax transaction conforms to the current tax laws or the possible outcomes of a tax position taken. So this is a bit new for me – the fun never ends!

Hey…you still awake? Yea – well then, why are you snoring?

Anyway here is a video – I hope you like it 🙂

The Income Treatment of Tree Stumps

From IRS publication 544

Tree stumps.   Tree stumps are a capital asset if they are on land held by an investor who is not in the timber or stump business as a buyer, seller, or processor. Gain from the sale of stumps sold in one lot by such a holder is taxed as a capital gain. However, tree stumps held by timber operators after the saleable standing timber was cut and removed from the land are considered by-products. Gain from the sale of stumps in lots or tonnage by such operators is taxed as ordinary income.


The point of this post – there is actual tax rules if you sell your tree stumps, is tree stump sales so common that the IRS made sure they included it in a publication?