H. R. 4210
IN THE HOUSE OF REPRESENTATIVES
June 28, 2021
Ms. Sewell (for herself and Mr. Carter of Georgia) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide a special rule for certain casualty losses of uncut timber.
This Act may be cited as the
Disaster Reforestation Act.
Casualty losses of uncut timber
Section 165(b) of the Internal Revenue Code of 1986 is amended—
For purposes of subsection (a) and inserting the following:
For purposes of subsection (a)
by adding at the end the following new paragraph:
Special rule for casualty loss of uncut timber
In the case of the loss of any uncut timber from fire, storm, insects, invasive species, drought, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss (as otherwise determined under paragraph (1)) shall not be less than the excess of—
the value of such uncut timber determined immediately before such loss was sustained, over
the salvage value of such timber.
With respect to the appraisal of a timber casualty loss described in subparagraph (A)—
the appraisal valuation date shall be not later than 1 year after the casualty loss; and
the appraisal shall—
conform to the Uniform Standards of Professional Appraisal Practice (USPAP);
be limited to the value of the lost timber; and
be completed by a Federal- or State-certified appraiser.
Exclusion of timber not held for sale
Subparagraph (A) shall not apply to any timber unless such timber is held for the purpose of being cut and sold in connection with a trade or business that is not a passive activity within the meaning of section 469.
Inclusion of pre-merchantable timber
For purposes of this paragraph, the term uncut timber shall not fail to include pre-merchantable timber.
Subparagraph (A) shall not apply unless the uncut timber subject to the loss is reforested (with hardwoods, softwoods, or any combination thereof) by planting, seeding, or appropriate site preparation, not later than the close of the 5-year period beginning on the date of such loss.
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.